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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.
Pros
Cons
Easy and convenient to apply
Compare various lenders to get the best rates
Same-day financing in some cases
No promotional low-interest period
Strict eligibility criteria in some cases
Might have to borrow more than you need due to minimum loan amounts
Compare lenders with low minimum loan amounts for appliance financing
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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.
Pros
Cons
Easy and convenient to apply
0% or low interest in the first few months
Same-day financing
On approved credit
Admin fees
Limited to specific stores
High interest rates when promo period ends
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.
Store
Finance feature
Canadian Tire
0% interest on 24 equal monthly payments when you spend $150 or more
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.
Pros
Cons
Low interest rates
Easier to pay off
No need to apply for financing at time of purchase (just swipe your card)
Easy to max out a credit card
No 0% interest promo offer
Need to apply for the card in advance
Compare low-interest credit cards for appliance financing
4. Layaway
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.
Pros
Cons
Cash in on sales prices
No need to borrow money
Usually comes with 0% interest rates
Can come with service fees
Difficult and expensive to cancel
Appliance must be paid off in advance
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.
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.
Home appliance
Cost
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.
If you have bad credit, you can still get washer and dryer financing without a problem in most cases. You can apply for in-store financing in some cases. You may also want to look into layaway or rent to own if you want to avoid borrowing money upfront.
You don’t need any specific credit score to qualify for appliance financing in Canada. That said, you’ll have a better chance of getting approved if you have a credit score of 660 or above.
Interest rates for appliance financing vary depending on which lender you choose. In-store appliance financing tends to start at 0% and will usually increase drastically (to rates above 30%) when your term ends. Rates for interest-free credit cards usually range from 8.99% to 12.99%. Personal loans tend to range from 2% to 47%.
There are no credit checks or down payments required when you buy merchandise with Easyhome. Just be aware that you’ll have to pay interest on your purchase and that the overall cost for your rent-to-own appliance will be much higher in the end than it would be if you bought an appliance outright.
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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