11 best debt consolidation loans in Canada

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 traditional lender.

11 best debt consolidation loans in Canada

Loan provider	APR	Loan amount	Loan term	Key features
	6.99% - 46.96%	$300 – $50,000	3 - 60 months	Search platform with the largest lender network	Go to site Learn more
	6.99% - 46.96%	$500 – $50,000	3 - 120 months	Search platform, get multiple offers for all credit scores	Go to site Learn more
	9.99% - 46.96%	$500 – $35,000	6 - 60 months	Debt consolidation loans for bad credit	Go to site Learn more
	6.99% - 32.00%	$5,000 – $50,000	12 - 84 months	Competitive variable rates	Learn more
	19.99% - 39.99%	$500 – $10,000	9 - 60 months	Affordable payments, good customer service	Go to site Learn more
	8.99% - 34.99%	$1,000 – $35,000	36 - 60 months	P2P loans for debt consolidation, competitive rates	Go to site Learn more
	9.90% - 46.96%	$200–$35,000	6 - 60 months	Quick quotes with no impact to credit, for good and bad credit	Go to site Learn more
	From 10.78% - 22.48%	$5,000 – $35,000	6 - 60 months	Unsecured debt consolidation loans for near-prime borrowers	Learn more
	6.99% - 56.5%	$5,000–$500,000	1 – 5 years	Secured debt consolidation loans for bad credit	Learn more
	19.99% - 39.99%	$500–$50,000	6 - 120 months	Quick quotes for fair credit	Learn more
	9.99% - 46.96%	$500 – $100,000	9 - 120 months	Debt consolidation of high-interest loans with bad credit	Learn more

Alternatives to debt consolidation loans

If you are struggling to get approved for a consolidation loan and currently experiencing financial hardship, it may be time to consider debt relief options. Debt relief providers can help you find a personalized solution to make your debt payments more manageable.

Debt relief provider	Time to debt-free	Services provided	Requirements
	12 - 60 months	Connects you to credit counselling, debt management, debt consolidation, consumer proposal and more	$10,000+ in unsecured debt & a hardship that's preventing you from paying your creditors	Go to site Learn more
	36 - 60 months	Credit counselling, debt management, debt consolidation, consumer proposal and more	You need help getting out of credit card debt	Go to site Learn more

11 best debt consolidation loans in Canada

Learn more about each loan, including why it won, where it’s available and what to watch out for.

1. 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: 6.99% - 46.96%
• Loan amount: $300 – $50,000
• Loan term: 4 - 60 months
• Loan types: Secured and unsecured debt consolidation loans
• Eligibility requirements: Steady source of income
• Accepts bad credit: Yes
• Where it’s available: Across Canada

2. 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
• Loan types: Secured and unsecured debt consolidation loans
• Eligibility requirements: Currents debts must total less than 60% of income
• Accepts bad credit: Yes
• Where it’s available: All provinces

3. Spring Financial

Spring Financial is one of the more established alternative lenders in Canada. Its primary product is its unsecured personal loan, which you can use towards debt consolidation.

Best suited for: Borrowers with bad credit looking for fast approval and funding

• APR: 9.99% - 46.96%
• Loan amount: $500 – $35,000
• Loan term: 6 - 60 months
• Loan types: Secured and unsecured debt consolidation loans
• Eligibility requirements: Min. income of $1,800 /month, 3+ months employed
• Accepts bad credit: Yes
• Where it’s available: All of Canada

4. 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: 12 - 84 months
• Loan types: Unsecured debt consolidation loans
• 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.
• Accepts bad credit: No
• Where it’s available: Available All of Canada (except NS, QC, SK)

5. 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 – $10,000
• Loan term: 9 - 60 months
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: Min. monthly income of $1,666.67, full time employment/pension, min. credit score of 575
• Accepts bad credit: No
• Where it’s available: All provinces and territories except Quebec and Nova Scotia
  

6. 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 $35,000 with goPeer’s online loans to repay your debt.

Best suited for: People with good to excellent credit looking for competitive rates

• APR: 8.99% - 34.99%
• Loan amount: $1,000 – $35,000
• Loan term: 36 - 60 months
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: Recommended income of $40,000 /year, no payday loan debt, min. credit score of 650
• Accepts bad credit: No
• Where it’s available: All provinces

7. 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
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: Min. income of $13,000 /year, min. credit score of 500
• Accepts bad credit: Yes
• Where it’s available: British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island

8. Lendful

Lendful provides unsecured debt consolidation loans for people with credit scores over 600 (650 in Alberta and Quebec). It is part of the financial institution Peoples Group.

Best suited for: People who can’t get a bank or credit union loan but are looking for competitive rates

• APR: From 10.78% - 22.48%
• Loan amount: $5,000 – $35,000
• Loan term: 6 - 60 months
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: , min. credit score of 600
• Accepts bad credit: No
• Where it’s available: All provinces

9. Prudent Financial

Prudent Financial is an Ontario-based lender that provides secured debt consolidations. You can use your home or car as collateral.

Best suited for: Residents of Ontario with bad credit who own a home with equity or a car that’s paid off

• APR: 6.99% - 56.5%
• Loan amount: $5,000 – $500,000
• Loan term: 1 – 5 years
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: Home equity or car that’s paid off
• Accepts bad credit: Yes
• Where it’s available: Ontario

10. Fairstone

Fairstone provides secured and unsecured personal loans that you can use for debt consolidation. It’s one of the biggest alternative lenders in Canada and is owned by Fairstone Bank of Canada, a Schedule 1 bank.

Best suited for: People with fair credit looking for quick quotes

• APR: 19.99% - 39.99%
• Loan amount: $500 – $50,000
• Loan term: 6 - 120 months
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements: , min. credit score of
• Accepts bad credit: No
• Where it’s available:

11. easyfinancial

easyfinancial offers secured and unsecured personal loans that you can use to consolidate your debt. They specialize in working with people who can’t access traditional financing.

Best suited for: People with bad credit looking to consolidate loans with higher interest

• APR: 9.99% - 46.96%
• Loan amount: $500 – $100,000
• Loan term: 9 - 120 months
• Loan types: Unsecured debt consolidation loans
• Eligibility requirements:
• Accepts bad credit: Yes
• Where it’s available: All of Canada only

Debt.ca debt relief options

Debt.ca is a service for people who are greatly struggling with their finances. It does not offer debt consolidation loans but instead connects people to the more serious debt consolidation options, such as debt management programs and consumer proposals.

Best suited for: People experiencing financial hardship and can’t get approved for a debt consolidation loan

• APR: Varies
• Loan amount: N/A
• Loan term: Varies
• Loan types available: Debt.ca does not offer loans and instead will connect you to a service to help manage your debt
• Eligibility requirements: $10,000+ in unsecured debt & a hardship that's preventing you from paying your creditors
• Accepts bad credit: Yes
• Where it’s available: All of Canada

Consolidated Credit debt relief options

Consolidated Credit is a non-profit that helps Canadians who are experiencing financial hardship. It doesn’t provide any debt consolidation loans and instead helps people explore other debt relief consolidation options, such as credit counselling, debt management plans and consumer proposals.

Best suited for: People who can’t get approved for a debt consolidation loan and need relief from their credit card debt

• APR: Costs vary
• Loan amount: N/A
• Loan term: N/A
• Loan types available: Consolidated Credit does not offer loans and instead will connect you to a service to help manage your debt
• Eligibility requirements: You need help getting out of credit card debt
• Accepts bad credit: Yes
• Where it’s available: Across Canada

How to get the best debt consolidation loan in Canada online

1. Compare lenders. Compare several features such as interest rates, fees, loan amounts, loan terms and eligibility requirements.
2. 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.
3. Compare offers. Compare quotes and choose the best offer.
4. Submit documents. If required, submit documents to your top choice to verify your income and identity.
5. 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.
6. Get funded. Your debt consolidation lender will pay out your creditors, and you’ll make repayments to the lender.

Plans to get a debt consolidation loan in 2023

According to data released in the latest Finder: Consumer Sentiment Survey, fewer Canadians are focused on managing their debt with 3% planning to take out a debt consolidation loan in the third quarter of 2023, compared to 17% in the second quarter of 2023.

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 loanis the more common way to consolidate debt, but some lenders also offer secured debt consolidation loans.

Pros and cons of a debt consolidation loan

What are the requirements of a debt consolidation loan?

Requirements vary by lender but you typically need to meet the following criteria:

Are there guaranteed consolidation loans in Canada?

No. Steer clear of lenders offering guaranteed consolidation loans in Canada because this could be a scam. Legitimate lenders will first take a look at your finances before approving.

You can increase your chances of getting approved for a debt consolidation loan if you offer collateral or have a guarantor or cosigner, but if you’re facing legitimate financial hardship and struggling to keep up with your debts, you may want to look into debt relief options.

Survey methodology

The results of the Finder: Consumer Sentiment Tracker Q3 (CSTQ3) were collected through an online Pollfish survey conducted between August 10 to 21, 2023. In the survey, 1,013 Canadians from across the country were asked about their current debt obligations, among other questions regarding money goals and financial confidence. The estimated margin of error for the survey is +/- 3%, 90% of the time.

The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.

Frequently asked questions about debt consolidation in Canada

• Is consolidating debt a good idea in Canada?

  Consolidating debt can be a good idea if you get a lower interest rate than what you're currently paying. The best debt consolidation in Canada will help you save money, not just get you an easy-to-manage payment.

• Is it hard to get a debt consolidation loan in Canada?

  It depends on which lender you apply with. Some lenders have strict eligibility criteria that can make it difficult to qualify if you have a low credit score or a low/less traditional form of income. Others are more lenient and will accept bad credit in exchange for higher interest rates. Learn more about debt consolidation loans for bad credit.

• What qualifies you for a debt consolidation loan in Canada?

  You must be a Canadian citizen and the age of majority in your province. Depending on the lender, you may also need a decent credit score (usually 660 or above) and enough income to make your monthly payments.

• Does consolidating debt hurt your credit?

  Yes and no. When you apply for a debt consolidation loan, your score may go down temporarily when your lender checks your credit. However, the overall effect of debt consolidation should be positive if you make on-time payments and change your spending habits.

• Can I still use my credit card after debt consolidation?

  You can definitely use your credit card after debt consolidation, but you should be careful to avoid overspending. Keep your credit card balance low to avoid taking on more debt than you can afford.