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Where to get a $60,000 loan
Learn where you can find and how to qualify for $60,000 loans in Canada.
If you need a $60,000 loan, you can apply to financial institutions and online lenders. You’ll need good to excellent credit to qualify for a loan of this size, and you’ll likely need to put up collateral, such as your home and investments. Follow this guide to learn more about how you can increase your chances of approval and find the best loan for you.
Compare $60,000 loans
What will help me get approved for a $60,000 loan?
You’ll have a greater chance of getting approved for a $60,000 loan if you meet the criteria below.
- High credit score. To qualify for $60,000 loans, you’ll need to have better than average credit. Most lenders require a credit score of at least 680 to qualify, if not higher.
- Strong credit history. Your credit history should not have unpaid debts, late payments, bankruptcies and too many credit inquiries.
- Low debt-to-income ratio (DTI). Your DTI is the total amount of your monthly debt and bill payments divided by your gross monthly income, giving you a percentage. Lenders use this percentage to figure out if you have enough money freed up to make your monthly payments. Lenders typically want to see a DTI under 40%.
- Eligible collateral. You’re more likely to get a $60,000 loan if you use a valuable asset such as your home or investments to secure your loan. Different lenders accept different types of collateral. Just be aware your asset can be repossessed if you default.
- Stable job history and high income. Lenders will look at how long you’ve been at your current job (over 3 years is preferred), how much money you make and how established your employer is. This helps them to understand how likely you can pay off your loan on time without running into issues with making payments.
- Acceptable net worth. The lender will want to see that your net worth, which is your assets minus your debts, is higher than $60,000.
Apply for pre-approval
The best way to see whether you qualify for a $60,000 loan in Canada is to apply for personal loan pre-approval with different lenders. This gives you an idea of what your options are and what your interest rates will be based on your personal profile.
Types of lenders of $60,000 personal loans
Whichever lender you choose, you’ll likely need to secure a $60,000 loan with collateral.
The majority of banks offer $60,000 loans to customers with good to excellent credit. Bank personal loans usually come with competitive interest rates and are best for borrowers who want to manage their loan in person.
Credit unions may offer $60,000 loans to long-time members who have outstanding credit. However, it’s more common that credit union loans offer slightly smaller amounts capping out at around $50,000. You may get lower interest rates with a credit union personal loan.
Like credit unions, the majority of online loans from private lenders cap out at around $50,000 even if you have good to excellent credit.
How to get the best $60,000 loan in Canada
Think about the following features when choosing the best $60,000 loan for you:
- Interest rates. Rates start at 5.4%, depending on factors such as your credit score. Avoid agreeing to anything higher than 11% interest on a $60,000 loan and compare multiple lenders to make sure you get the best deal.
- Loan terms. Loan terms can vary from 6 to 60 months – they can be up to 25 years if you use your house as collateral. Look for the shortest term that will still give you affordable payments to avoid paying too much in interest.
- Turnaround time. Think about how fast you need the money. Chances are it’ll take weeks to get approved for a $60,000 loan in Canada. For a loan of this size, you’ll need to attend an in-person interview with a credit specialist if you apply to a traditional lender.
- Fees. Some lenders charge fees for origination, NSF, late and early repayment on your loan. Read the fine print to make sure you don’t end up with hidden charges. In Canada, federally regulated financial institutions are required to let you pay off your personal loan early or make extra payments without penalties unless the loan is secured by real estate.
- Eligibility criteria. Check which eligibility criteria are required to apply. You may need to meet specific credit score and income requirements to qualify especially if you’re applying with the bank or a credit union.
- Lender reputation. Look for a lender that has many customer reviews, a reputation for good customer service and readily available contact information.
What are the monthly payments on $60,000 loans?
Example: $60,000 loan over 5 vs 7 years at 5.99% and 9.49%
The total interest you pay on your loan will depend on your term and interest rates. With shorter terms, your monthly payments will be higher but you’ll pay less interest over time. With longer terms, you’ll get a lower monthly payment but your overall interest will be higher.
|Loan amount||APR||Loan term||Monthly payment amount||Total cost of loan||Extra cost compared to cheapest option|
Your main goal when choosing a loan term is to think about how much you can reasonably spend each month. Aim for the highest monthly payment you can afford to cut down on the interest you pay over the life of your loan, and to get out of debt faster.
Calculate payments on your $60,000 loan in Canada
Personal loan monthly payment calculatorCalculate how much you could expect to pay each month
|Loan terms (in years)|
Fill out the form and click on “Calculate” to see your estimated monthly payment.
Based on your loan terms
Can I get a $60,000 loan with bad credit?
It will be next to impossible to find a $60,000 loan in Canada with bad credit unless you secure your loan with an asset or get a cosigner. Even then, it’s a long shot and you’ll need to do a lot of digging to find a lender that’s willing to work with you. If you do find a lender, expect your interest rates to be very high.
When searching for a $60,000 with bad credit, you should steer clear of any lender that offers guaranteed approval. No legitimate lender would ever give out that kind of money without doing a deep dive on your credit and financial history. If a lender is promising to give you approval, it’s likely a scam.
How does a $60,000 personal loan affect my credit score?
Getting a $60,000 loan may affect your credit score in different ways at different times.
- When you apply for a loan. Your credit score may go down by a small amount as your lender does a hard credit check on your file. This can affect your score for up to a year.
- When you make your payments. If you make regular on-time payments, your credit score should either stay the same (if it’s already very high) or increase.
- If you fail to make your payments. If you miss payments or default on your loan completely, your credit score will go down. How far it goes down and for how long will depend on how often you’re delinquent on your payments.
When is it a good idea to get a $60,000 loan? When should I avoid it?
When to get $60,000 loans
It may be a good idea to get a $60,000 loan if you meet the following criteria:
- You can get low interest rates. Getting a low interest rate is essential with a $60,000 loan especially if you’re paying it off over 5 or more years. Aim for a rate under 11% if possible to avoid paying too much.
- You want to consolidate debt. It could be a good idea to get a $60,000 loan if you plan to use it to pay off your debt with higher interest rates. This can help make your debt more manageable and lower the amount of interest you pay over time.
- You have a valuable asset. Your interest rates will be lower if you secure your loan with an eligible asset such as your house. Just make sure you’re 100% certain you can afford your repayments or you risk losing your asset.
- You’re investing in your home or business. When you’re putting money into expenses that will build your wealth in the long-term, it can be worth it to borrow money. For example, it could pay off to use funds for home renovations or to build up your business.
When to avoid $60,000 loans
You may want to avoid a $60,000 loan in the following situations:
- You can’t afford the monthly payments. Make a budget and carefully consider whether you can afford a $60,000 loan. If you’re not entirely sure you can make your payments, consider another option or wait until you’re in a better financial position.
- You want a loan to rebuild your credit. You don’t need to borrow as much as a $60,000 loan to rebuild your credit. You can do this with a $5,000–$10,000 loan.
- You have bad credit. You may have a hard time finding $60,000 loans with bad credit especially if you don’t have a cosigner or an asset to secure your loan. You may need to improve your credit before you can qualify.
- You’re paying for an unnecessary expense. It’s best to avoid using a $60,000 loan in Canada to pay for unnecessary expenses such as a wedding or vacation or to make investments in risky assets.
Frequently asked questions
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