A $50,000 loan is a large amount to borrow, and you typically need a high income and good to excellent credit score to take out a loan of this size. Browse your options for $50k loans below and find out how you can get approved.
How much income do I need to get a $50k loan?
There is no precise number for income that will guarantee approval on a $50,000 loan. Lenders’ approvals are based on many factors, and income is just one of them. To increase your chances of approval for a loan of this size, you’ll need to show the lender you can afford the payments. Having a high income, good credit and a low debt-to-income ratio (DTI) will help. Some lenders may also require collateral.
Get a $50,000 loan in Canada
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How can I qualify for a $50,000 loan in Canada?
The typical requirements of a $50,000 loan include the following:
Strong credit score. You often need an “excellent” credit score of 800+ to qualify for a $50,000 loan. You may also be eligible if you have a “good” to “very good” score of 660+, depending on which lender you use.
Strong credit history. Lenders prefer to work with borrowers who have a long history of paying back debts on time. You generally need to have at least 3-4 years of history on your credit report to qualify for a $50,000 loan.
High income. Lenders don’t like to give out large loans unless you have a good income and consistent employment. They’ll check your pay stubs and/or ask for tax documents to make sure you can afford your loan.
Low debt-to-income ratio (DTI). Try to pay down your existing debts so you can lower your DTI. Lenders will want to see that your monthly budget can manage the repayments of a $50k loan.
Asset to use as collateral. You may be able to use an asset such as your home or vehicle to secure a $50,000 loan. Just make sure you can make repayments or your asset could be repossessed to pay back your loan.
What types of $50,000 personal loans can I apply for?
There are different types of $50,000 loans available in Canada. Some of the most common loan options include the following:
Secured personal loans. Secured loans can provide you with up to $50,000 as long as you’re willing to put up an asset such as your home or vehicle to secure your loan. Just keep in mind that this asset can be sold to cover your payments if you default.
Unsecured personal loans. Unsecured personal loans have more stringent requirements if you need a $50k loan. You’ll need to have a strong income and credit score.
Guarantor loans. Guarantor loans may be a good way to get a $50,000 personal loan if your credit score isn’t the best. In this situation, you can ask a friend or family member with a high credit score to cosign with you.
How much will a $50,000 loan cost me?
The main costs you need to consider for $50,000 loans are the interest rates and fees (or a combination of both, known as APR).
Interest rates. Interest rates can vary between 6.99% and 46.96% for a $50,000 loan, depending on factors such as your credit score and which lender you choose. You can sign up for fixed rates if you want consistent monthly payments or variable rates if you want your rate to fluctuate with the prime rate.
Fees. You might have to pay additional fees to get your loan up and running. These can include origination fees, sign-up fees, late payment fees and prepayment fees. Your best bet is to look for a lender that charges minimal fees or none at all. This will leave you with lower costs for your $50,000 loan.
Annual percentage rate (APR). Most lenders add the interest rates and fees on your loan together to come up with your annual percentage rate (APR). Comparing this number across various loans and providers can help you get a full idea of how much you’ll have to pay.
Write the loan term in years (not months) under Loan terms.
Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
Hit Calculate.
Review your results.
How much would a monthly payment be on a $50,000 loan?
How much the monthly payment would be on a $50,000 loan depends on the interest rate and loan term. Loan terms range anywhere from 3 - 60 months or more. The rule of thumb is to look for the shortest loan term available that still gives you payments that fit your budget. This will make sure you can pay off your loan in the fastest time possible, and you’ll save money on interest in the process.
Compare 3 different loan terms and monthly payments for a $50k loan below to see what we mean:
Term
Interest rate
Monthly payment
Total interest paid
1 year
10%
$4,396
$2,750
3 years
10%
$1,613
$8,081
5 years
10%
$1,062
$13,741
As you can see, if you take a 3-year term instead of a 5-year term, you’ll pay $551 more per month, but you’ll also pay your loan off 2 years faster and save over $5,000 in interest.
7 tips to get a $50,000 loan
Follow the tips below to secure the lowest interest rates on your $50,000 loan:
Check your credit score. Know what your credit score is and make sure it’s well over 660 if you plan to apply for a $50,000 loan. If you don’t have a high enough score, you can try to build your credit score or think about getting a secured or guarantor loan. You can receive a copy of your credit report from one of Canada’s 2 main credit bureaus (Equifax or TransUnion).
Fix errors on your credit report. You may have errors on your credit report that are bringing your credit score down. File a dispute with the credit bureau. This can take a few weeks, but it can increase your credit score.
Pay down your other debts. Pay down money you owe on other debts before you apply for a $50,000 loan to bring down your debt-to-income ratio. The lower your ratio, the more chance you’ll get approved for a $50,000 loan.
Make yourself look like an ideal borrower. Collect evidence that you have a stable job and have lived at the same residence for many years. This will demonstrate to your lender that you’re a stable and reliable person who is less likely to default on payments.
Know your priorities. Do you need money fast or would you prefer to get a lower rate? Are you looking to pay the $50k loan back quickly or over a longer period of time? Having a clear list of your priorities can help you narrow down lenders fast and choose the best lender for you.
Shop around. Source quotes from at least 3-4 providers, and negotiate your rates down wherever possible. Make sure to include several types of providers in your comparison, including big banks, credit unions and online private lenders.
Get pre-approved. Many lenders offer pre-approval on personal loans that gives you an idea of what you’ll pay. You won’t want to do this with every lender since it can take time, but it could help tip the scales once you’ve narrowed your choice down to a handful of options.
Follow these steps when filling out your application for a $50,000 loan:
Application process
Visit your lender’s online website to fill in an online application. This should take only a couple of minutes if you have the necessary documentation on hand.
Input personal information such as your full name, date of birth, address, phone number and email.
Provide financial details such as your bank name and transit number.
Submit to a credit check or fill out the necessary paperwork to put up an asset as collateral to secure your loan.
Loan eligibility requirements
To qualify for a $50,000 loan, you may need to meet the following eligibility requirements:
You must be at least 18 years old or the age of majority in your province or territory.
You’ll need to be a Canadian citizen or a permanent resident with a valid Canadian address and two valid pieces of identification.
You must be able to demonstrate that you can pay off your loan by showing pay stubs, tax statements and other financial documents.
You may need to provide additional details such as your debt-to-income ratio and information about your assets (especially if you intend to use one to secure your loan).
You’ll usually need to have a bank account to apply for a $50k loan online.
Can I get a $50,000 loan with bad credit?
If you’re looking for a $50,000 loan with bad credit, your option is to apply to an alternative lender that specializes in bad credit personal loans. You’ll likely need to offer collateral to get approved, such as your house or car. Your income and employment should also demonstrate stability.
Lenders like easyfinancial and Fairstone offer $50,000 loans if you use your house as collateral. Be prepared for steeper rates though, because lenders view borrowers with bad credit as higher risk. If you don’t get approved for a $50k loan, lenders may approve you for a smaller amount instead.
What can I do to improve my chances of $50,000 loan approval with bad credit?
To improve your chances of getting approved for a $50,000 loan in Canada, especially if you have bad credit, consider the following options:
If you can, pay off your existing debts first. Paying off your current debts will lower your debt-to-income ratio, which will help improve your credit score and your overall chances of approval for a $50,000 loan.
Improve your credit score first. Increase your credit score by paying off any outstanding bills and making payments consistently over time. It may take some time to see the improvements to your credit score using these strategies, but it’ll will be worth it if you want to improve your chances of $50k loan approval.
Get a joint application or cosigner. If you don’t meet the credit score requirements, consider applying with a cosigner or another applicant. This can help you get approved for the loan you want. A cosigner is someone whose finances are in great shape who agrees to sign the loan with you. Should you become unable to make your payments, your cosigner will be responsible for covering them for you. They should understand what they’re committing to.
Consider a secured loan. Putting up collateral can help lower your risk in the lender’s eyes because you’re essentially agreeing to give up your asset should you become unable to cover your loan payments. If you own a home, a home equity loan could get you a lump sum that equals to the market value of your home minus the amount you still owe on your mortgage (up to $75,000 for bad credit). Take out a secured $50,000 loan only if you’re certain you can make your payments because you’ll risk losing that asset.
Review the eligibility criteria. Before you apply for a loan, make sure you meet the eligibility criteria. Look for things like minimum income, credit score, employment and age requirements, and if you don’t meet one of the requirements, don’t apply for the loan.
Submit all necessary documents. Check what documents are needed and make sure you’re able to submit everything that is required. Having your information handy can help speed up the loan process too.
What happens after I get my $50,000 loan?
Once you get your money deposited, you’ll make payments on your $50,000 loan according to a set schedule. These payments can be weekly, bi-weekly or monthly payments, depending on what you’ve specified in your loan contract.
You might want to consider setting up automatic payments so you don’t have to take the time to manually pay each month.
Bottom line
Your finances need to be strong if you’re looking to take out a $50,000 loan in Canada. Making sure you have a good credit score or have an asset to put up as collateral can help you get approved. Before signing a loan contract, understand the terms of your $50k loan, including the interest rate, loan term, repayment schedule and any extra fees.
Frequently asked questions about $50,000 loans
Your best bet to get a $50,000 loan is to go into your loan application with a credit score of 660 or above. If your credit isn't in the best shape, you might also want to apply with a cosigner or put up an asset such as your home or vehicle to secure your payments.
In many cases, yes. You may be able to apply with a cosigner with many lenders. This may even lower your overall loan cost since it could help you get lower interest rates and better terms for your $50,000 loan.
Not usually, no. Legitimate lenders typically only offer large amounts to borrowers with good to excellent credit. If a lender offers a loan for $50,000 without a credit check, you should definitely be suspicious since it's likely that they aren't a legitimate lender.
You'll generally need a good to excellent credit score of 660 or higher to qualify for a $50k loan in Canada at competitive interest rates. If your credit score is on the lower side, you may still be able to qualify with alternative lenders, but your interest rate will be higher.
It depends on your lender. You may be able to pay your loan off early but you should double-check that you won't incur penalties for doing so.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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