- APR is the annual interest rate plus fees you must pay to get the debt consolidation loan. Some lenders advertise the annual interest rate separately from the fees, but you should instead look at the APR so you know the total cost of the loan. Compare personal loan rates in Canada.
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9 best debt consolidation loans in Canada
Get a lower interest rate and pay off your debt faster.
The best debt consolidation loans in Canada help you manage your payments and save money. Banks and credit unions offer debt consolidation loans for people with good to excellent credit. This guide focuses on alternative lenders that offer some of the best debt consolidation loans in Canada online for people who can’t or don’t want to qualify with a bank.
9 best debt consolidation loans in Canada
| Loan provider | APR | Loan amount | Loan term | Key features | |
|---|---|---|---|---|---|
| 6.99% - 32.00% | $5,000 – $50,000 | 24 - 84 months | Competitive variable rates | Go to siteLearn more | |
| 8.00% - 34.00% | $1,000 – $25,000 | 36 - 60 months | P2P loans, competitive rates | Go to site | |
 | 19.99% - 39.99% | $500 – $15,000 | 9 - 60 months | Affordable payments, good customer service | Go to site |
 | 6.99% - 46.96% | $100 – $50,000 | 3 - 120 months | Search platform, get multiple offers for all credit scores | Go to site |
 | 5.4% - 46.96% | $300 – $50,000 | 4 - 60 months | Search platform with the largest lender network | Go to site |
 | 9.90% - 46.96% | $200–$35,000 | 6 - 60 months | Quick quotes with no impact to credit | Go to site |
| 19.99% - 29.99% | $2,500 – $25,000 | 36 - 60 months | Consolidate high-interest loans, earn rewards | ||
 | 5.99% - 18.99% | $5,000 – $50,000 | 36 - 60 months | Competitive rates, people with no credit history can apply | Learn more |
 | 19% - 46.95% | $1,000–$15,000 | 6 - 60 months | Consolidate high-interest loans with fair to bad credit | Learn more |
How to get the best debt consolidation loan in Canada online
- Compare lenders. Compare several features such as interest rates, fees, loan amounts, loan terms and eligibility requirements.
- Apply to your best picks. Fill in the online applications to get personal loan pre-approval. You’ll need to provide personal details such as your name, contact information, housing information and employment. If you want to get multiple offers via one application, apply to a loan broker.
- Compare offers. Compare quotes and choose the best offer.
- Submit documents. If required, submit documents to your top choice to verify your income and identity.
- Get approved. Get an official loan offer. Review the contract carefully, making sure you’re aware of how much the debt consolidation loan may cost you overall.
- Get funded. Your debt consolidation lender will pay out your creditors, and you’ll make repayments to the lender.
How to compare the best consolidation loans in Canada
To find the best debt consolidation loans, compare the following features:
Interest rates
Get an annual percentage rate (APR) that’s lower than what you’re currently paying for all your debts. If, for example, you’re paying 20% APR on credit card debt, and are offered a debt consolidation loan with a 39% APR to pay off that debt, you’ll actually pay more with the debt consolidation loan. That’s why it’s important to carefully compare the best debt consolidation offers and to not simply assume you’re getting a better deal on a new loan.
Fees
The best debt consolidation loans have little to no fees. Watch out for fees to process your loan, such as origination or admin fees, which may be included in the APR. Also look out for NSF fees ($25 to $50 is common), late payment fees (fixed dollar amount or a percentage of the outstanding payment), loan insurance and prepayment penalties (uncommon for debt consolidation loans).
Loan amounts
Choose a lender that can approve the amount you need. Lenders differ in how much they can offer a borrower. If you find that you can’t get approved for the full amount you need to consolidate your debt, it may still be worth consolidating even a part of it. Remember that the goal of getting the best debt consolidation loan is to save money and pay off your debt faster. Even a smaller consolidation loan can help accomplish that.
Loan terms
When deciding on the best debt consolidation loan in Canada for your needs, you’ll need to find the balance between monthly payments and the shortest loan term you can afford. Even if a long loan term and smaller monthly payments may seem appealing, you could end up spending a lot more money in interest in the long run.
Eligibility requirements
If you have fair or bad credit, focus on lenders that specialize in loans for your credit score. Many of the best lenders listed in this guide also offer bad credit debt consolidation loans in Canada, including Loans Canada, SkyCap Financial and LoanConnect. If you have good to excellent credit, focus on lenders that offer low interest loans.
Reputation and customer service
Lenders of the best debt consolidation loans will not pressure or rush you to sign and will make sure you understand the terms of your loan.
Improves credit score
The best debt consolidation loans will increase your credit score as you make on-time payments. Prioritize lenders that report payments to the credit bureaus.
Secured vs unsecured
An unsecured debt consolidation loan is the more common way to consolidate debt, but some lenders also offer secured debt consolidation loans.
Pros and cons of debt consolidation loans
Pros
- One payment. Easily track your expenses and never miss a deadline with one easy-to-manage payment.
- Save on interest. The best debt consolidation loan in Canada for you will come with a lower rate than what you currently pay.
- Boost your credit. Pay off all of your debts and make on-time payments on your new loan to increase your score.
- Earlier payoff. Depending on your term and APR, you may find it’s faster to pay off your debts with a fixed monthly payment (instead of a minimum payment).
Cons
- Does not eliminate debt. Even if you get the best debt consolidation loan, you’re shifting existing balances to a new loan.
- Can hurt your credit. Using debt consolidation loans to pay off credit cards or lines of credit could leave you to overspend and default on your payments.
- No intro period. Unlike balance transfer credit cards, debt consolidation loans don’t offer low or 0% interest intro periods.
- Potentially higher monthly cost. A loan might get you out of debt faster but repayments are often higher than the monthly minimum on your credit card.
- Less flexibility. Your new loan will have a fixed monthly payment instead of a monthly minimum repayment like credit cards.
What are the requirements to consolidate debt?
Requirements for the best consolidation loans vary by lender but you typically need to meet the following criteria:
| Criteria | Sample of documents required |
|---|---|
| Canadian citizen/resident and the age of majority in your province (18 or 19 years old) | Government-issued ID, like a passport or driver’s licence |
| Meet minimum income requirements | Pay stubs, bank statements, tax returns |
| Meet minimum credit score requirements | Consent to have your credit score checked and provide your Social Insurance Number in some cases |
| Active bank account | Direct deposit information |
9 best debt consolidation loans in Canada
Learn more about each best debt consolidation pick, including why we chose it, where it’s available, benefits and what to watch out for.
Symple Loans
Symple is an online lender that offers low-interest online debt consolidation loans to prime borrowers. It launched in Canada in January 2021. Its interest rate is variable, so your rate will change if the Bank of Canada increases or decreases its rate.
Best suited for: People with good to excellent credit looking for favourable variable rates
- APR: 6.99% - 32.00%
- Loan amount: $5,000 – $50,000
- Loan term: 24 - 84 months
- Eligibility requirements: Canadian citizen or permanent resident, 18 years or older, with good to excellent credit (650 or higher), earn a minimum income of $50,000 annually, no history of bankruptcies.
- Where it’s available: Available All of Canada (except NS, QC, SK)
Why we chose Symple Loans
Symple Loans offers a low 6.99% starting rate, with a lower maximum interest rate than other lenders (32%).
Applying for a quote is quick and easy, and it won’t affect your credit score. You can borrow up to $50,000 and there are no prepayment penalties. The company is also BBB-accredited and a member of the Canadian Lenders Association (CLA).
Other benefits
- Funding by the next business day
- Private and secure
- Easy online application
What to watch out for
- 0% to 5% origination fee
- Not available for bad credit
goPeer
goPeer is an online lending platform that connects Canadians looking for a loan with other Canadians looking to lend money. Interest is paid directly to the people who fund your loan. Borrow up to $25,000 with goPeer’s online debt consolidation loans to repay your debt.
Best suited for: People with good to excellent credit looking for competitive rates
- APR: 8.00% - 34.00%
- Loan amount: $1,000 – $25,000
- Loan term: 36 - 60 months
- Eligibility requirements: Recommended income of $40,000 /year, no payday loan debt, min. credit score of 650
- Where it’s available: All provinces
Why we chose goPeer
goPeer is a peer-to-peer network that strives to offer better interest rates than the competition. It offers low-cost loans to borrowers with strong finances.
Since it operates online, goPeer also cuts down on operating costs and transfers those savings back to borrowers. The platform is fully regulated and any interest on your loan goes to helping other Canadians reach their investment goals rather than benefiting the bank.
Other benefits
- 15-day grace period for unexpected events
- Anonymous application
- Secure platform
- No prepayment penalties
What to watch out for
- High credit score required
- Rates as high as 34%
- Origination fee baked into APR
SkyCap Financial
SkyCap Financial is an online lender that provides debt consolidation loans. Instead of fixating on your credit score, it takes a more holistic approach to approving applications by looking at factors such as your credit history, employment and income.
Best suited for: People with fair to bad credit who want friendly, professional customer service
- APR: 19.99% - 39.99%
- Loan amount: $500 – $15,000
- Loan term: 9 - 60 months
- Eligibility requirements: Min. monthly income of $3,333, full time employment/pension, min. credit score of 600
- Where it’s available: All provinces and territories except Quebec and Nova Scotia
Why we chose Skycap Financial
This lender offers holistic loan decisions that don’t discriminate against borrowers with less-than-perfect credit. It lets you borrow up to $15,000 and offers near-instant loan decisions, with official approval in as little as 24 hours.
SkyCap Financial is BBB-accredited and has received positive feedback from its clients. It has a solid online presence and offers its customers access to an exclusive financial literacy course to help them improve their finances.Other benefits
- Lower starting rate than other alternative lenders
- No prepayment fees
What to watch out for
- High rates for bad credit
- Higher rates than traditional lenders
- May not improve your credit score
LoanConnect
LoanConnect is an online broker. It maintains a large database of lenders that can finance borrowers with good or bad credit. Lenders are generated based on your unique profile.
Best suited for: All types of borrowers looking to receive and compare multiple offers
- APR: 5.99% - 46.96%
- Loan amount: $500 – $35,000
- Loan term: 12 - 60 months
- Eligibility requirements: Currents debts must total less than 60% of income
- Where it’s available: All provinces
Why we chose LoanConnect
LoanConnect is a BBB-accredited company that works with multiple lenders to help you find the best debt consolidation loan for your personal situation. It’s free to use. Starting rates are low, ringing in at 5.99% for unsecured loans and 5.99% for secured loans.
Loan decisions are based on factors like your credit score, income and current debts. People with a past bankruptcy or consumer proposal can also apply.
Other benefits
- Simple online application
- Pre-approval in 5 minutes
- Funding in 24 to 48 hours
- Secured and unsecured options
What to watch out for
- High rates for bad credit
- Not a direct lender
Loans Canada
Loans Canada is a broker that finds loans for all types of borrowers, including people with fair or bad credit. Its platform is free to use. Fill out one online application in less than 10 minutes to get matched with lenders that are open to financing you.
Best suited for: People with fair to bad credit who want to search the largest lender network
- APR: 5.4% - 46.96%
- Loan amount: $300 – $50,000
- Loan term: 4 - 60 months
- Eligibility requirements: Steady source of income
- Where it’s available: Across Canada
Why we chose Loans Canada
Loans Canada has the largest network of lenders in Canada to help you find the best debt consolidation loan for your needs. Rates start low at 8% for unsecured loans and 4.7% for secured loans.
The company is BBB-accredited and you can apply with any credit score. Just be aware that you may pay much higher interest when applying with bad credit.
Other benefits
- Funding in 24 to 48 hours
- Get your matches within minutes
- Secured and unsecured options
What to watch out for
- Not a direct lender
- High rates for bad credit
- Watch out for scammers posing as Loans Canada
Mogo
Apply for a Mogo Personal Loan of up to $35,000 with terms ranging from 6 - 60 months. If you return the principal within 100 days, you can get your paid interest and fees back.
Best suited for: People looking to get quick online quotes with no impact to credit
- APR: 9.90% - 46.96%
- Loan amount: $200 – $35,000
- Loan term: 6 - 60 months
- Eligibility requirements: Min. income of $13,000 /year, min. credit score of 500
- Where it’s available: British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island
Why we chose Mogo
Mogo offers flexible online loans for good and bad credit. Its 100-day money back guarantee is a unique perk available to borrowers of the standard Mogo Personal Loan and MogoMini line of credit. You can pay off Mogo loans any time without penalty.
Aside from its loan products, Mogo also offers an array of products to help borrowers manage their finances. As a Mogo customer, you can also take advantage of prepaid credit cards, credit score tracking and an environmentally responsible investment platform.
Other benefits
- Low starting rates
- Free quote with no impact to credit score
- Funding in 1 to 3 business days
What to watch out for
- High rates for bad credit
- Some negative Mogo reviews online
- MogoLiquid loans don’t qualify for the 100-day promo
- Loans are powered by Lendful and easyfinancial
Parachute
Parachute is an Ontario-based lender that specializes in online debt consolidation loans. Get one easy monthly payment and earn cashback when you follow your personalized debt repayment plan.
Best suited for: People with fair credit looking to consolidate high-interest debt and earn rewards
- APR: 19.99% - 29.99%
- Loan amount: $2,500 – $25,000
- Loan term: 36 - 60 months
- Eligibility requirements: Min. credit score of 580, $5,000+ in debt, min. income of $30,000 annual
- Where it’s available: Ontario only
Why we chose Parachute
Parachute is an innovative and ethical lender that offers affordable debt consolidation loans. The company is unique because it takes a holistic approach to lending to help its customers succeed. This includes providing each customer with a personalized roadmap to help them manage their debt, incentivizing customers to pay off debt with cashback and other rewards, and paying debt off directly with lenders to remove the temptation for borrowers to overspend.Other benefits
- Rebuilds credit
- Better rates than popular high-interest loans
- Free prepayment
What to watch out for
- Minimum credit score of 580
- Only available in Ontario
- Strict eligibility criteria
QuadFi
QuadFi is an online lender that makes it easier for people with little or no credit to apply for personal loans. Apply for up to $50,000 and get fair rates starting at 5.99%, without the need for a cosigner.
Best suited for: Newcomers and students or people with good to excellent credit
- APR: 5.99% - 18.99%
- Loan amount: $5,000 – $50,000
- Loan term: 36 - 60 months
- Eligibility requirements: min. credit score 680, min. income $3,750/month
- Where it’s available: Ontario, BC and Alberta
Why we chose QuadFi
QuadFi is a unique lender in the Canadian marketplace because it offers affordable loans to newcomers who don’t qualify for personal loans from banks or credit unions. QuadFi can do this because it created a new underwriting model that takes into account non-conventional factors like education and foreign credit history (if available). Although helping people with thin credit files is its specialty, QuadFi can also offer competitive rates to people with a strong credit history.
Other benefits
- Free quote with no impact to credit score
- Free prepayment
- Funds in under 48 hours
- Certified B Corporation
What to watch out for
- Only available in some provinces
- Hard credit check is required
- Bad credit won’t qualify
Progressa
Progressa is an online lender that focuses on debt consolidation loans. Once your loan is approved, Progressa will pay out your creditors on your behalf. The company has been around since 2013.
Best suited for: People with fair to bad credit looking for a lender specializing in debt consolidation
- APR: 19% - 46.95%
- Loan amount: $1,000–$15,000
- Loan term: 6 - 60 months
- Eligibility requirements: Min. $1,500 monthly income, employed for 6+ months
- Where it’s available: All provinces and territories except Quebec
Why we chose Progressa
Progressa specializes in debt consolidation loans and is BBB-accredited with an A+ rating. It also has a rating of 4.1 out of 5 stars based on 209 Google reviews (as of November 3, 2022).
Progressa has flexible eligibility requirements; it has a low minimum income and no minimum credit score requirements, so people who can’t get approved by banks can apply.
Other benefits
- Increases your credit score
- Accepts government assistance as income (as long as you’re employed)
- Approval in as little as 30 minutes
What to watch out for
- People with good credit can get lower rates elsewhere
Frequently asked questions about debt consolidation in Canada
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