5 ways to get appliance financing in Canada
Here's how you can finance your household appliance if you're not looking to pay in cash.
There are a number of ways to get appliance financing in Canada without tapping into your savings. The 5 most common forms of appliance financing include in-house store financing, personal loans, low interest credit cards, layaway and rent-to-own programs. Keep reading to learn more about the best option for you.
1. Get a personal loan
You can apply for a personal loan from a bank, credit union or private lender if you’re looking for appliance financing in Canada.
- Bank. You’ll usually need a good credit score (660+) and regular employment to qualify. Some banks have minimum loan amounts between $3,000 and $5,000.
- Credit union. Eligibility criteria are usually more flexible, and you may be able to borrow smaller amounts than you can with the bank.
- Private lender. You can apply online and compare quotes from numerous private lenders. This could be the best option if you have bad credit and can’t qualify elsewhere.
Compare lenders with low minimum loan amounts for appliance financing
2. Finance through the store
Many appliance stores will give you 0% or low interest in-store appliance financing in Canada. You’ll typically have 6 to 36 months to pay back what you owe before you start to incur interest.
Sample in-store financing
Check out some sample rates and fees for in-store financing below or get a more detailed list by visiting our A-Z list of store financing.
|Canadian Tire||0% interest on 24 equal monthly payments when you spend $150 or more||Shop Canadian Tire now|
|Best Buy||0% interest over 3 – 24 months, admin fee between $29.99 and $119.99||Shop Best Buy now|
|Wayfair||0% interest on 4 bi-weekly payments for purchases of $50-$300, or 12-24 months on purchases over $300||Shop Wayfair now|
|Home Depot||0% interest for 12 months with Home Depot credit card||Shop Home Depot now|
|The Brick||0% interest financing for 18 – 36 months, admin fee of $0 to $199.95||Learn more|
|Leon’s||0% interest financing for 6 to 24 months, admin fee of $129.95||Learn more|
3. Use a low-interest credit card
Low interest credit cards come with rates that range between 8.99% and 12.99% (compared to 19.99% for regular cards). They let you pay more towards your principal balance so you can pay your appliance off faster.
Compare low-interest credit cards for appliance financing
Putting an appliance on “layaway” means that you put a deposit down to hold it for later. Once you pay the appliance off in full – through regular monthly payments or a lump-sum amount – you can go in and pick it up. You usually won’t pay interest and you don’t need good credit to use this type of appliance financing.
5. Rent to own
Rent-to-own stores let you rent an appliance until you make a certain number of payments, at which point you’ll own the appliance. Just keep in mind that you’ll usually pay 2-5x as much through rent to own, and the store can repossess your appliance if you miss a payment.
How do I get appliance financing with bad credit?
You can get all types of appliance financing for bad credit. Find out more about which one might be the best fit for your unique set of needs:
- In-house financing. Some stores may be able to offer appliance financing if you have bad credit. However, some offers, such as 0% or low-interest financing, are on approved credit only, meaning you’ll need a good credit history to qualify.
- Personal loans. If you have bad credit, you’ll have a harder time getting appliance financing through a bank or credit union personal loan. You can get a bad credit personal loan from an online lender but expect steep interest rates. It’s best to avoid this type of financing if you can.
- Low interest credit card. If you already have a low interest credit card, this can be a good option to pay lower interest rates (usually between 8.99% and 12.99%). However, you may not be able to qualify for this type of credit card with bad credit.
- Layaway. Layaway can be a suitable option for bad credit if you don’t mind waiting to get your appliance. You won’t pay interest in most cases, but you can still take advantage of sale prices. If you change your mind part way through or miss payments, you may face cancellation or restocking fees.
- Rent to own. While rent to own might seem like a good idea, it can be much more expensive than buying an appliance outright. It’s best to avoid this type of appliance financing if you don’t want to pay 2-5x the ticket price.
How much do appliances cost?
Consult the table below to find out how much you’ll pay to buy various types of home appliances in Canada.
|Washer||$250 to $2,050|
|Dryer||$200 to $1,750|
|Freezer||$250 to $1,000+|
|Refrigerator||$700 to $10,000+|
|Kitchen stove||$795 to $10,000+|
|Dishwasher||$425 to $1,595|
|Air conditioner||$3,000 to $7,500|
|Microwave||$85 to $400|
|Water heater||$105 to $8,000+|
Ways to save before you opt for appliance financing in Canada
Saving money is the best way to pay for an appliance if you want to avoid interest, fees and other expenses:
- Make a budget. Make a budget to figure out how much you’re spending each month and where you can cut corners.
- Plan your meals. Think about what you want to cook each week to spend less at restaurants and cut down on food waste.
- Avoid unnecessary expenses. Limit how much you spend on “feel good” expenses such as entertainment, travel and dining out.
- Sell items online. Look around the house for items you no longer need and may be able to sell for a decent price online.
- Get a second job. Apply for a part-time job to supplement your income.
- Cancel subscriptions. Look at your monthly credit card bill and see if there are any subscriptions you don’t use that you might be able to cancel.
Frequently asked questions
More guides on Finder
Camera financing in Canada
Compare six ways to finance a camera in Canada, including options for good and bad credit.
Compare electronics financing in Canada
Compare six ways to finance electronics in Canada, including financing for bad credit.
Electric bike financing in Canada
Searching for affordable e-bike financing in Canada? Check out these six options.
5 ways to get MacBook financing in Canada
Get the MacBook you want at a price you can afford.
How to finance a PlayStation 5 in Canada
Your simple guide to the 4 ways to finance a PS5 in Canada.
How to finance a mattress or bed in Canada
Read our guide to the six ways to finance a mattress or bed.
Cell phone financing in Canada
Learn 6 different ways to finance the latest iPhone, Galaxy or Pixel, including options that don’t require a down payment.
iPhone financing in Canada
Find out your options for iPhone financing in Canada.
The 4 types of computer financing in Canada
Need a loan for that laptop or computer? Learn about 4 ways to finance your purchase.
6 types of furniture financing
Need cash to upgrade your home decor? Here are your furniture financing options in Canada.