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Long-term loans in Canada

Find long-term personal loans for good or bad credit with terms up to 3 to 10 years.

Name Product Interest Rate Loan Amount Loan Term Requirements Link
Spring Financial Personal Loan
Finder Rating: 4 / 5: ★★★★★
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
LoanConnect Personal Loan
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 5.75%-46.96%
$500 - $50,000
3 - 120 months
Requirements: currents debts total less than 60% of income, min. credit score 300
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Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
Mogo Personal Loan
Finder Rating: 4.5 / 5: ★★★★★
OFFER
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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Get a free quote without affecting your credit score and get a loan on the same day. Track your credit score for free.
goPeer Personal Loan
Finder Rating: 3.6 / 5: ★★★★★
goPeer Personal Loan
8.00% - 33.92%
$1,000 - $25,000
36 - 60 months
Requirements: recommended income $40,000/year, no payday loan debt, min. credit score 600
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Connects creditworthy Canadians looking for a loan with Canadians looking to invest. Apply in minutes and get a response within 24 hours.
SkyCap Financial Personal Loan
Finder Rating: 4.1 / 5: ★★★★★
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 36 months
Requirements: min. income $1,200/month, stable employment, min. credit score 550
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Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
Fairstone Unsecured Personal Loan
Finder Rating: 3.9 / 5: ★★★★★
Fairstone Unsecured Personal Loan
26.99% - 39.99%
$500 - $25,000
6 - 60 months
Requirements: able to make monthly repayments, min. credit score 560
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Get a free quote without impacting your credit score. Receive funds within as little as 24 hours. No prepayment fees.
ConsumerCapital Personal Loan
Finder Rating: 3.2 / 5: ★★★★★
ConsumerCapital Personal Loan
19.99% - 34.99%
$1,500 - $12,500
24 - 60 months
Requirements: min. income $1,900/month, 6+ months employed, no payday loan debt, min. credit score 600
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Complete an application in less than 10 minutes and get a decision within 24 hours.
Loans Canada Personal Loan
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
Requirements: min. credit score 300
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A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
FlexMoney Personal Loan
Finder Rating: 4 / 5: ★★★★★
FlexMoney Personal Loan
18.90% - 46.93%
$500 - $15,000
6 - 60 months
Requirements: min. income $2,000/month, 3+ months employed, min. credit score 500
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Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan any time without penalty.
Loan Away Personal Loan
Finder Rating: 3.6 / 5: ★★★★★
Loan Away Personal Loan
19.90% - 45.90%
$1,000 - $5,000
6 - 36 months
Requirements: min. credit score 300
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A lender that approves loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
Fairstone Secured Personal Loan
Finder Rating: 3.7 / 5: ★★★★★
SECURED
Fairstone Secured Personal Loan
19.99% - 23.99%
$5,000 - $50,000
60 - 120 months
Requirements: must be a homeowner, min. credit score 560
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Use your home equity to get a secured loan with flexible repayment options. Get a free quote without impacting your credit score.
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Compare up to 4 providers

Overall representative example
If you borrowed $20,000 over a 5-year term at 9.50% APR (variable), you would make 60 monthly payments of $420.04 and pay $25,202.23 overall, which includes interest of $5,202.23. The overall cost for comparison is 9.50% APR representative.

Long-term personal loans typically run between 3 and 10 years. These loans give you smaller monthly repayments than shorter-term loans, but you’ll pay much more in interest over time. The amount of time you’ll get to repay your loan will depend on how much you borrow. For example, you may get 10 years to repay a loan of $100,000, while you might only get 3 years to repay a loan of $10,000.

Types of long-term personal loans

There are two main categories of long-term loans in Canada which we outline below. You’ll need to decide which type of loan best suits your needs before you apply for financing.

Secured vs unsecured loans

  • Unsecured loans. These loans rely on your credit score and income to determine if you’re eligible for financing.
  • Secured loans. Secured loans let you borrow money that’s guaranteed by collateral such as your home or car. If you fail to repay secured loans, then your asset can be taken as payment. Loans that use home equity as collateral tend to offer larger loan amounts and longer loan terms, sometimes up to 25 years.

Fixed-rate vs variable-rate loans

  • Fixed-rate loans. Fixed-rate long-term loans in Canada include a fixed interest rate and consistent monthly repayment amounts for the lifetime of your loan. This means that the amount you pay back each month never changes so that you can budget ahead.
  • Variable-rate loans. Variable-rate long-term loans rise and fall with the prime rate that’s set by the Bank of Canada. This causes your monthly payments and interest costs to fluctuate from month to month.

Are there long-term loans for bad credit?

There are long-term loans for bad credit, but be careful with long terms if you’re getting a personal loan with a low credit score. Bad credit personal loans have steeper interest rates, and the combination of a long loan term and high interest rate can make your loan especially costly.

For illustration purposes, let’s say a borrower with a 550 credit score takes out a $5,000 loan with a loan term of 3 years at 32% APR. The cost of their loan would be as follows:

  • Monthly payment: $167.96
  • Total interest: $5,077.77
  • Total loan cost: $10,077.77

As you can see in this example, the interest is actually more than the amount borrowed.

Strike a balance between the loan term and monthly payment

If you have bad credit, aim to get the shortest loan term possible with monthly payments you can still manage. If you need a long loan term so you can afford the monthly payments, know exactly how much the loan will cost you throughout its lifetime before signing. Also be aware of any extra fees you may encounter, such as NSF fees, late payment fees and fees for paying off your loan early.

Tips to get a long-term loan with bad credit

  • Apply to an online lender. Your best bet to get a long-term loan for bad credit in Canada is to avoid the bank and apply to an online lender. Online lenders tend to have more flexible eligibility requirements. Compare online lenders.
  • Get a cosigner. You may want to ask a friend or family member with good credit to cosign your loan for you. This may lower your interest rates and increase your chances of approval.
  • Secure your loan with an asset. You may be able to get around a bad credit score by securing the money you borrow with an asset such as your home or car. Just be aware that your asset can be repossessed if you fail to make your loan payments.

Long-term loans for bad credit with instant decision in Canada

If you’re looking for long-term loans for bad credit with instant decision, consider online lenders. Some online lenders give personal loan pre-approval within 1 to 3 minutes, letting you know instantly whether they want to proceed with your application or not.

Getting pre-approved does not mean you’re guaranteed the loan; it means that from what it sees on the surface so far, a lender wants to approve your application. If you choose to proceed, you may need to provide documents to verify your income and information, and the lender will do a more in-depth review of your finances. If everything checks out, it will give you an official approval.

Other online lenders may not give instant pre-approval, but they can give official approval on the same day you apply.

Unsecured personal loans for bad credit with instant decision

Bad credit long-term installment loans in Canada

Installment loans for bad credit are a type of unsecured personal loan from online lenders with more lenient eligibility requirements. For example, some installment loans have a minimum credit score of 300 and accept non-employment income. Because of the leniency of their criteria, their interest rates are higher, sometimes as high as 47%. High-interest installment loans are only ideal if you’re trying to avoid payday loans, which are the most expensive type of consumer loans.

Is a long-term loan better than a short-term loan?

The type that makes the most sense for you will depend on your unique set of needs and financial situation. Generally, you should aim to pay off your loan as soon as possible, but you also don’t want to have unreasonable monthly payments that could cause you to default.

Feature

Long-term loans in Canada

Short-term loans in Canada

Best for

People with large expenses or a low monthly budget and can get a reasonable interest rate

People who need a quick injection of cash that they want to pay back quickly

Pros

  • Smaller monthly payments
  • Easier to qualify for large amounts
  • Pay less interest over time
  • Loan gets paid back faster
Cons
  • Pay more interest over time
  • Takes longer to pay back loan
  • Larger monthly payments
  • Harder to qualify for large amounts

How to get a long-term personal loan

You can apply for long-term loans in Canada by following the steps below:

  1. Decide how much you can borrow. Take time to think about your budget and how much you can afford to repay each month. You can use an online loan calculator to find out how much your monthly payments will be with interest.
  2. Compare lenders. Once you know how much you can borrow, it’s time to compare lenders. You can compare banks, credit unions and online lenders to find the best deal. You should aim to find the lender with the lowest long-term interest rates and the best repayment terms.
  3. Aim to prequalify. Prequalifying for a loan gives you an idea of how much you can borrow and what your interest rates will look like before you actually apply. The prequalification process is faster than applying for a loan outright, and lets you apply with several lenders without ever having to commit to a loan.
  4. Complete an application. Once you’ve decided on a lender, your next step is to go through the application process. This will involve filling out forms and submitting personal and financial information. The process tends to be much less time-intensive if you’ve already pre-qualified with the provider you’re interested in.
  5. Negotiate your terms and sign your loan contract. Discuss your long-term loan interest rates and terms with your provider. Try to negotiate your rates down by asking your lender to match or exceed other quotes you’ve received. Sign your loan contract when you’re ready to commit to an offer.

If you apply with an online lender, or bank or credit union that you have an account with, you can receive your funds as soon as the next business day. Otherwise it could take a few business days or even a few weeks.

What requirements will I need to meet?

You’ll usually need to meet the following criteria to qualify for long-term personal loans with most lenders:

  • Canadian citizen or permanent resident
  • Over the age of 18 (or 19 in some provinces)
  • Steady employment and regular income
  • Low debt-to-income ratio (under 43% is expected)
  • Not experiencing bankruptcy or other forms of unmanageable debt

Required documents

You’ll usually need to provide the following information to apply for long-term loans in Canada:

  • Government-issued ID. You’ll be required to show proof of ID like your driver’s licence or passport.
  • Proof of income. You’ll need to provide documents such as pay stubs and tax assessments to show that you make enough money to afford your monthly payments.
  • Credit report. You’ll have to let your lender pull your credit report so that it can assess your creditworthiness.
  • Debt-to-asset ratio. You’ll likely be required to submit information about your debt-to-asset ratio to show that other debts won’t affect your ability to make repayments.

5 questions to ask when comparing long-term loans

  1. What is the interest rate of the loan? This largely defines what your repayments will be over the course of the loan. Take this into account and calculate what your repayments will be to determine if you’ll be able to make them. You will also likely have the option to choose between fixed-rate and variable-rate interest rates.
  2. Is the loan secured or unsecured? Secured loans require you to provide some kind of collateral and will typically have lower interest rates in comparison to unsecured loans. If you’re buying a car, the car will usually serve as collateral. Other forms of collateral include equity on your home, expensive jewellery or antiques.
  3. How much is the loan amount? The amount you can borrow depends on various factors such as your credit score, what you need the funds for, your ability to provide suitable collateral, your income and your monthly expenses.
  4. Can you repay the loan early? Repayment flexibility may be important to you even if you want a long-term loan. You may come into some cash and want to make extra repayments or decide you want to pay your loan off altogether before the original payoff date. Find out if you can do this without incurring extra fees.
  5. What are the other fees and charges on the loan? Other fees and charges will likely apply. These fees should always be clearly listed on your loan agreement. If you’re unsure of any charges, contact the lender directly.

Representative example: Sally takes out a long-term personal loan

Sally needs money to pay for renovations to her basement. She wants to borrow $20,000 and can afford monthly repayments of at least $1,000. She compares short- and long-term loan interest rates to figure out how long she should take her loan out for.

Feature of loan

Short-term loan

Long-term loan

Term

2 years

5 years

Interest rates

12%

8%

Monthly payments

$941.47

$405.53

Total loan cost

$22,595.27

$24,331.67

Total interest

$2,595.27

$4,331.67

Even with a lower long-term loan interest rate, Sally still ends up paying nearly $2,000 more in interest with the long-term personal loan. That said, she still decides to go with the long-term loan to cut her monthly payments down significantly.

Calculate monthly payments of a long-term loan

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Loan terms (in years)
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Which providers offer long-term loans in Canada?

There are a number of different providers that offer long-term loans in Canada. These include the following:

  • Bank loans. Bank loans are provided by Canada’s Big Five banks and other major financial institutions. These loans often come with higher interest rates and have strict repayment requirements.
    • Providers include BMO, TD Bank, RBC, CIBC, Scotiabank, HSBC, Canadian Western Bank and National Bank.
  • Credit union loans. Credit unions provide long-term personal loans that are a little bit more flexible than big bank loans. You’ll typically need to be signed up with the credit union you want to borrow from but you may get better interest rates.
    • Providers include Meridian, Servus, Vancity, Connect First, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings.
  • Private long-term personal loans. Private loans are typically offered by online and alternative providers. They tend to come with less strict eligibility criteria than bank loans and you may be able to qualify with bad credit.

Pros and cons of long-term loans in Canada

Pros

  • Lower monthly payments. Long-term personal loans tend to come with lower monthly payments, which can free up more of your monthly cash flow and help you borrow money on a small budget.
  • Larger amounts. You’ll be able to borrow larger amounts of money with long-term personal loans since your lender will spread your payments out over a longer period of time.
  • Pay off the loan as your budget allows. If your lender doesn’t charge prepayment penalties, you can still save on interest by making extra repayments with windfalls like a raise or annual bonus without straining your budget each month.

Cons

  • Higher total cost. You’ll usually pay thousands of dollars in interest on top of your original loan amount with a long-term personal loan, which can lead your costs to rise exponentially.
  • In debt for a longer period of time. You may have difficulty qualifying for other forms of credit while you’re paying off your long-term personal loan. This is because your debt-to-income ratio will increase as soon as you borrow.

3 things to watch out for

  • Excessive debt. While taking out a long-term personal loan might seem like a good idea, it might lead to debt that may be difficult to repay. Try to make a repayment plan ahead of time and account for unexpected expenses in your budget.
  • Fees and charges. Make sure you go through the fine print on your contract and find out exactly what you have to pay in terms of fees and charges. These can come in the form of application fees, insurance costs, origination fees, early repayment fees, settlement charges and late charges, among many others.
  • Tendency to overspend. Long-term personal loans normally set a minimum loan amount that may leave you taking out more money than you actually need. If you’re not responsible with that extra cash, you can be tempted to spend it elsewhere. Remember, only borrow as much as you need.
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Bottom line

You can apply for long-term loans in Canada through your bank, credit union or private lender. These loans offer lower monthly payments than short-term loans, but you’ll pay much more in interest over the lifetime of your loan due to the longer repayment period. Find out more about long-term loans in Canada and compare lenders to find the best deal.

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