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Horse loans and equine financing

If you can’t cover the full cost of a horse out of pocket, here’s how financing options can help.

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Shannon Terrell

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Emma Balmforth

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Name Product Interest Rate Loan Amount Loan Term Requirements
Loans Canada Personal Loan
Loans Canada Personal Loan
5.4% - 46.96%
$300 - $50,000
4 - 60 months
Requirements: min. credit score 300
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Spring Financial Personal Loan
Spring Financial Personal Loan
9.99% - 46.96%
$500 - $35,000
6 - 60 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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SkyCap Financial Personal Loan
SkyCap Financial Personal Loan
19.99% - 39.99%
$500 - $15,000
9 - 60 months
Requirements: min. income $3,333/month, full time employment/pension, min. credit score 600, no bankruptcy
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LoanConnect Personal Loan
LoanConnect Personal Loan
6.99% - 46.96%
$100 - $50,000
3 - 120 months
Requirements: min. credit score 300
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Mogo Personal Loan
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
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Fairstone Secured Personal Loan
Fairstone Secured Personal Loan
19.99% - 24.49%
$5,000 - $50,000
36 - 120 months
Requirements: must be a homeowner, min. credit score 560
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Buying your first horse is exciting — from picking out new tack and equipment to touring stables and paddocks in search of your new four-legged friend. As you begin the journey of becoming a horse owner, one thing is clear: Purchasing a horse can be expensive. If you don’t have the funds to purchase a horse outright, what other financing options can you pursue? We explore the world of equine financing to help you make a decision.

What are your financing options to pay for a horse?

There are several financing options for you to consider, however keep in mind some lenders may be hesitant to lend you money to buy a horse since its value depreciates over time — and the horse could get sick or injured.

  • Personal loan. Unless the lender specifically sets restrictions, you can use a personal loan to buy your new horse. Some lenders even offer loans specifically for equine purchases. Compare personal loans.
  • Line of credit. Withdraw the amount you need up to your credit limit and pay interest only on what you actually use.
  • Lease to own. You and the seller of the horse agree to a price for the horse. You’ll be expected to make regular lease payments to the seller until you’ve paid off the entire loan. This can be an affordable way to get a horse, but you could wait years to officially own your horse outright.

How much does a horse cost?

Buying a horse means more than the purchase price. The real expense comes from the ongoing costs of care and maintenance.

Here’s a quick rundown of the potential costs and fees that come with owning a horse:

  • Purchase price. Most pleasure horses — horses ridden for leisure only — cost between $2,000 and $10,000. On the other hand, a show horse for show jumping, hunting or dressage, could set you back as much as $50,000.
  • Horse feed. A horse can consume up to 2.5% of their weight in a day. A healthy 1,000 pound horse requires fresh hay daily. The cost for feeding your horse can add up quickly at about $10 a bale — that’s $25 a day.
  • Boarding costs. Unless you’re lucky enough to live on a property that can accommodate your horse, you’ll pay for room and board at a local stable. Depending on the area, boarding costs range from $400 to $500 per month but can be as high as $2,000 a month in some provinces and cities.
  • Veterinarian fees. You want your four-legged pal to stay healthy and happy, which means frequent veterinarian exams. Yearly vaccines, deworming and dental care can cost up to $500 a year. Costs for emergency veterinary calls vary depending on the visit.
  • Farrier work. Horses’ hooves grow at a rate of ¼ inch monthly. Since they spend so much time on their feet, it’s important to take care of their hooves. Farrier’s often charge $30 to $40 for a trim and $100 for a full set of shoes.
  • Tack and equipment. Unless you plan to ride your horse bareback, you’ll need tack and equipment that includes a saddle, bridle, halter, fly mask, blanket, saddle pad, girth and grooming equipment. Saddle prices range from a few hundred to several thousand dollars.
  • Horse trailer. At some point, you’ll likely require transportation for you and your horse. A basic horse trailer could cost between $5,000 and $30,000, depending on the size. A horse trailer with additional living quarters can cost up to $100,000.

Example: Suki gets a horse

Suki has been riding since she was little and her parents have just bought a farm in the countryside that already has a stable and everything she could possibly need to own a horse. At 18 years old, her parents have given her $5,000.00 to go towards buying the horse, but tell her she will need to pay for any additional costs including ongoing costs like food and vet bills. Suki works part-time and can afford the on-going costs, but will need to take out a loan to pay for the horse she wants. The horse costs $7,000.00, which means Suki needs to take out a loan for $2,000.00. After shopping around for lenders, Suki’s parents decide to back her for a loan and she is offered a competitive rate of 6.00% from an online lender. She will have one year to pay back the $2,000.00 loan and will have affordable monthly payments of $172.13.

Cost of horse$7,000.00
Loan typePersonal loan
Loan amount$2,000.00
Interest rate6.00%
Loan term1 year
Additional feesOrigination fee of 3.00% ($60.00)
Monthly payment$172.13
Total loan cost$2,125.59

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

4 questions to ask to choose the best horse for you

Funding the purchase of your four-legged friend is only half of the equation. First, you’ll need to find the right horse that fits your needs. Ask yourself the following questions:

  1. Are you purchasing for pleasure or for show?

    Pleasure and show horses vary in cost. The average pleasure horse costs $5,000, while the average show horse costs around $40,000. If you ride for leisure, a pleasure horse is your best bet. If you’re interested in pursuing a career in jumping, hunting or dressage, consider investing in a horse that’s ready for show.

  2. Do you want a horse or a pony?

    Ponies look similar to horses, but are not horses. Ponies are generally smaller and sport more stubborn temperaments than horses. If you have experience riding both, decide which you’re interested in owning.

  3. What breed are you interested in?

    Many pleasure horses are a mix of several breeds, while most show horses are purebred. Each horse breed comes with its own unique set of personality traits and quirks. Research the horse breeds available in your area and decide which appeals to you.

  4. What sort of riding experience do you have?

    If you’re an experienced horseman or horsewoman, you may welcome the challenge of training a green horse or pony. Newbies should look for a horse that’s broken in, friendly, patient and good natured. Most sellers are happy to let you jump on the horse you’re interested in for a test ride, so don’t be afraid to ask.

Bottom line

Purchasing a horse for the first time can be exhilarating, however it’s important to be financially prepared for the ongoing costs. Prepare for veterinary bills, boarding fees and the cost of keeping your four-legged friend well fed and watered.

To pay for your new horse, consider looking at personal loans, a line of credit or agree to a lease arrangement with the owner.

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