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3-year loans in Canada

Compare the rates, fees and loan amounts of personal loans with 3-year loan terms.

Name Product Interest Rate Loan Amount Loan Term Requirements Link
Loans Canada Personal Loan
Secured from 4.70%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
Requirements: min. credit score 300
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A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 60 months
Requirements: min. income $1,600/month, stable employment, min. credit score 550, no bankruptcy
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Apply in less than 5 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours.
Loanz Personal Loan
29.90% - 46.90%
$1,000 - $15,000
12 - 60 months
Requirements: min. credit score 570, min. income $1,200/month, 3+ months employed
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Apply online and get approved in less than 3 minutes. Receive funds in as little as 15 minutes. Borrowers with bad credit or no credit can apply.
LoanConnect Personal Loan
Secured from 4.70%, Unsecured 6.99%-46.96%
$500 - $50,000
3 - 120 months
Requirements: min. credit score 300
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Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
OFFER
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
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Get a free quote without affecting your credit score and get an unsecured loan the same day. 100-day money-back guarantee: If you're not happy with your loan, pay back the principal and get the 100 days of paid interest and fees back.
SECURED
Fairstone Secured Personal Loan
19.99% - 23.99%
$5,000 - $50,000
36 - 120 months
Requirements: must be a homeowner, min. credit score 560
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Use your home equity to get a secured loan with flexible repayment options. Get a free quote without impacting your credit score.
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How do 3-year personal loans work?

A 3-year personal loan is a loan that you repay with regular monthly payments over 36 months, plus interest and fees. Three years is one of the most common term lengths for a personal loan.

Most lenders offer 5-year terms as well. And almost all personal loans come with fixed rates, which means you’ll have the same payment each month.

Can I qualify for a 3-year loans in Canada?

You can qualify for a 3-year term if you show the lender you have the money in your budget for the monthly payment. This can range from under $100 to over $3,000 in some cases.

If the monthly payment on a 3-year loan is too high for your budget, your lender might suggest a longer term. With personal loans, you can often make extra payments with no penalty — so even if you qualify for a 5- or 7-year term, you can still pay it off over 3 years.

Eligibility requirements of personal loans

Eligibility requirements for 3-year loans in Canada vary from lender to lender, but generally, you need the following:

  • Be the age of majority in your province or territory.
  • Be a Canadian citizen or resident.
  • Meet the minimum income.
  • Meet the minimum credit score.

What types of 3-year personal loans can I get?

Types of 3-year loans in Canada include the following:

  • Secured personal loans. If you’re considering a secured personal loan, you can typically use the equity in your home, your paid-off car, money in a savings account or any other valued asset — fine art or jewelry — as security for the loan. Home equity is the most common asset to use.
  • Unsecured personal loans. An unsecured personal loan requires no secured asset and can be used for nearly anything, from consolidating debt to making a large purchase.
  • Fixed-rate personal loan. With this loan, your interest rate will stay the same throughout the loan term, so you get predictable monthly payments.
  • Variable-rate personal loan. With this loan, your rate will fluctuate with the markets, which will increase or decrease how much of your payment goes towards your principal. If interest rates increase, more of your monthly payments will go towards paying interest. Banks and credit unions offer variable-rate loans.

How to compare 3-year loans in Canada

If you’re certain that a 3-year loan is right for you, the next step is to compare all of your options to get the best deal possible. Here are features to look out for when comparing:

  • Interest rate. You’ll be locked into this interest rate for 3 years, so be sure it’s competitive. Secured loans tend to have better rates than unsecured loans — but keep in mind that you’re risking an asset if you fail to make payments on a secured loan.
  • Upfront and ongoing fees. Are there any application or origination fees? Will you be charged monthly or annual fees? Always calculate the true cost of the loan by incorporating interest rates and fees or looking at the annual percentage rate (APR).
  • Other fees. Find out before you apply if your loan will attract fees for making additional payments or repaying the loan ahead of time.
  • Eligibility. Factors vary by lender, but a few things that may be taken into consideration are your credit history, debt-to-income ratio, annual income and employment.

How much do 3-year loans cost?

The cost of a 3-year loan in Canada depends on the loan amount and APR. Here’s how much your estimated monthly payment could be on a 3-year loan with different loan amounts and interest rates:

Loan amount5% APR10% APR15% APR20% APR
$3,000

 

$89.91$96.80$104
$111.49
$4,000$119.88$129.07$138.66$148.65
$5,000$149.85$161.34$173.33$185.82
$10,000$299.71$322.67$346.65$371.64
$15,000$449.56$484.01$519.98$557.45
$20,000$599.42$645.34$693.31$743.27

Calculate the cost of a 3-year loan

Use our calculator to see how much 3-year loans might cost each month and in total interest based on different loan amounts, interest rates and fees.

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Pros and cons to consider before applying

Pros

  • You can lock in a competitive rate
  • Shorter loan terms help save on the total cost of the loan
  • Three-year terms are available at almost all lenders

Cons

  • Monthly payments can be high for large loan amounts
  • Some lenders charge a fee to pay back your loan early
  • You might not qualify if you don’t have consistent cash flow

    Watch out for 3-year installment loans

    In Canada, installment loans are a type of personal loan offered by alternative lenders to people with bad credit. Installment loans have more flexible eligibility criteria, but they come at a price of higher rates up to 47%. Your installment loan can become especially costly if you get a 3-year installment loan with a steep interest rate. Before signing on the dotted line, ask the lender how much of your payment will be going towards interest vs the principal and also check whether you can pay off the loan early without any penalties.

    Bottom line

    Three-year loans are readily available at many lenders. Before applying, know how much a personal loan with a 3-year loan term will cost you overall, and check that you won’t be charged fees for paying it off early. Read our guide on personal loans to learn more.

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