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Personal loan interest rates in Canada

Browse the latest personal loan rates from a range of lenders.

The interest rates of personal loans in Canada vary based on many factors such as your credit score, income, current debts, type of lender, loan amount, loan term and collateral. Find out what interest rates a borrower may encounter based on these factors and compare personal loans from multiple lenders in Canada.

Latest personal loan interest rates in Canada

Loan providerInterest ratesLoan termLender typeMin. credit score
Loans CanadaFixed rate, secured: from 5.4%

Fixed rate, unsecured: from 8%

4 - 60 monthsOnline broker300Go to site
SkyCapFixed rate, unsecured: 19.99% - 39.99%9 - 60 monthsOnline lender575Go to site
LoanConnectFixed rate, secured: from 10%

Fixed rate, unsecured: 5.99%–46.96%

3 - 120 monthsOnline broker300Go to site
Spring FinancialFixed rate, unsecured: 9.99% - 46.96%6 - 60 monthsOnline lender500Go to site
LoanzFixed rate, unsecured: 29.90% - 46.90%12 - 60 monthsOnline lender570Go to site
goPeerFixed rate, unsecured: 8.00% - 34.00%36 - 60 monthsOnline P2P platform650
MogoFixed rate, unsecured: 9.90% - 46.96%6 - 60 monthsOnline lender500Go to site
ConsumerCapitalFixed rate, unsecured: 19.99% - 34.99%24 - 60 monthsOnline lender600Read review
Steinbach Credit Union

(Steinbach Credit Union)

Fixed rate, secured: starts at 7.7%Not availableCredit unionTypically 650-680Credit union loans
FirstOntarioFixed rate, secured: 8.74%
Fixed rate, unsecured: 9.24%
Variable rate, secured: 9.24%
Variable rate, unsecured: 9.74%
Not availableCredit unionTypically 650-680Credit union loans
National BankFixed rate, unsecured: 9.65% - 11.30%
Variable rate, unsecured: 11.70% - 13.20%
6 - 60 monthsBankTypically 650-680Read review
ATBFixed or variable rate, secured or unsecured: 7.20% - 14.20%12 - 60 monthsCrown corporationTypically 650-680

What is the average personal loan interest rate in Canada?

Based on the latest information available from the Bank of Canada, the average interest rate for personal loan plans is 9.35%. However, this combines fixed and variable rates and does not differentiate between loans with collateral (including auto loans) and loans without collateral. You may end up paying more than the average once your personal variables are factored in.

Personal loan rates in Canada from January 2013 to November 2022

What are the current personal loan rates in Canada?

Current personal loan rates in Canada are 5.4% to 46.96%. Personal loan rates depend on your credit score, collateral and other factors.

What’s in store for personal loan rates in 2023?

The first Bank of Canada rate announcement of the year occurred on January 25, 2023. The central bank raised its benchmark interest rate by one-quarter of a percentage point, bringing it to 4.5%. This is the eighth rate hike in less than 12 months.

The Bank of Canada now expects to pause rate hikes conditionally as it assesses the impact of its increases on the economy.

If you get a variable rate personal loan, your interest rate will go up, down or stay the same depending on what the Bank of Canada does. If your rate goes up, your monthly payment will generally stay the same, but more will go towards paying the interest vs principal. If you get a fixed rate personal loan, your interest rate will stay the same throughout the life of the loan.

How do I find the best personal loan rates in Canada?

You can find the best low interest personal loans in Canada by ensuring your finances are in great shape before you apply and comparing offers from multiple lenders. You’ll need a good to excellent credit score, a solid history of on-time payments (especially recently) and your monthly debt payments should be less than 40% of your monthly income.

Banks, credit unions and select online lenders offer the best personal loan rates in Canada. To compare offers, get personal loan pre-approval from your top choices.

What are the personal loan interest rates of banks?

Most banks do not disclose their personal loan rates, but you can expect to see rates from 9% to 20%. Below is a sample of bank personal loan rates:

  • TD (via Canada Post, temporarily unavailable): 9.98% - 21.03%
  • National Bank: 9.65% - 13.20%

What is a good interest rate on a personal loan?

What is considered a good interest rate on a personal loan for you will mostly depend on your credit score. If you have an excellent credit score, you may be able to qualify for an interest rate as low as 5.4%. If you have a poor credit score, you may qualify for rates as high as 46.96%.

What factors affect interest rates of personal loans in Canada?

Personal loan interest rates in Canada will depend on many factors, including:

  • Credit score. You need good to excellent credit to qualify for favourable loan rates.
  • Income. Lenders will check if you have enough regular income coming in to afford your monthly repayments.
  • Debts. Lenders want to see a debt-to-income ratio (DTI) below 40%, but the lowest rates go to borrowers with a DTI below 20%.
  • Collateral. Securing your loan makes lowers the risk for the lender, which gets you lower rates.
  • Loan amount and term. Lenders will offer different rates depending on how much you want to borrow and how long you need to repay.
  • Type of interest rate. Banks, credit unions and online lenders offer fixed rates. Credit unions and banks are the main providers of variable rates.

Bad credit vs good credit: How does it impact my rate?

Your credit score has a direct influence on your personal loan interest rates in Canada.

  • Higher scores. Scores of 660 or higher usually mean you’ll get lower personal loan rates.
  • Lower scores. Scores below 660 usually mean higher personal loan rates.

Loan interest rates by credit score

Consult the table below to get an idea of personal loan rates in Canada based on credit score. Keep in mind these rates are for illustrative purposes only, and your personal loan rate will depend on other factors besides your credit score.

Credit scoreInterest rate
760-900 (excellent)5.4% to 11%
725-759 (very good)6% to 15%
660-724 (good)7% to 20%
560 – 659 (fair)15% to 35%
300 – 559 (poor)18% to 47%

How does the type of lender affect personal loan interest rates in Canada?

Generally, credit unions, banks and select online lenders offer the most competitive interest rates if you have a good to excellent credit score.

Type of lenderInterest rates
Big banksPersonal loan interest rates are competitive if you have good to excellent credit. You will have difficulty getting approved with bad credit.
Credit unionsPersonal loan rates are competitive if you have good to excellent credit. Rates are better than or equal to bank personal loan rates. You will have difficulty getting approved with bad credit.
Online lendersInterest rates vary widely depending on the lender. Online lenders typically have higher rates than banks and credit unions. Some online lenders offer reasonable rates starting below 10% for good credit while others charge much more. It’s easier to qualify with bad credit if you’re willing to pay higher rates.
Peer-to-peer lendersPersonal loan interest rates from P2P lenders can be competitive if you have good to excellent credit. P2P lenders don’t have physical stores and can therefore pass on those savings to the borrower. With this method, you borrow from other Canadians through a platform rather than a financial institution. A P2P platform like goPeer will require a minimum credit score of 650 to apply, but you’ll need a much higher credit score to get the lowest rates.

How does loan term affect personal loan rates?

Your loan term can also influence how much interest you pay over time.

  • Longer terms. You’ll typically pay more interest for longer term loans since you’re paying an annual interest rate over a larger number of years. Learn more about long term loans.
  • Shorter terms. You’ll pay a lower amount of interest over the duration of your loan with shorter terms (though your actual interest rate may be higher). Learn more about short term loans.

Representative example: Jimmy compares a short and long term loan

Jimmy has a credit score of 710 and wants to get a $10,000 personal loan to refinish his basement. He compares the personal loan interest rates for 2 loans with different terms and interest rates to determine which one is a better fit.

FeatureLoan 1Loan 2
Term3 years5 years
Interest rates8.2% ($1,314 over 3 years)7.3% ($1,966 over 5 years)
Fees2% origination fee ($200)2% origination fee ($200)
Monthly payments$314.29$199.43
Total amount borrowed$11,514$12,166

While the longer term loan has a lower interest rate upfront, Jimmy chooses the shorter term loan (which has a higher upfront rate) since it will cost him less in interest over time.

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Secured vs unsecured personal loan interest rates

Your personal loan interest rates may also fluctuate based on whether you take out a secured or unsecured loan:

  • Secured loan. Secured personal loans let you use valuable assets such as your home or vehicle as collateral to secure lower interest rates.
  • Unsecured loan. Unsecured personal loans rely on your credit score, income and debts to determine your eligibility to borrow money. They often come with higher interest rates than secured loans, especially if your credit score is below 660.

Fees to consider on top of interest rates

You may need to pay additional fees on top of personal loan interest rates with some lenders. Look for the following fees when applying for a loan:

  • Origination fee. You may encounter an origination fee of 0% to 5% of your loan amount. This is a fee to process your loan, and it is usually deducted from your loan amount.
  • Late fee. Lenders may charge charge a late fee that’s a percentage of the outstanding payment or a fixed dollar amount.
  • Non-sufficient funds fee (NSF). You’ll pay this common fee if a payment bounces. This is in addition to the fee your bank will charge for insufficient funds. Lenders typically charge $25 to $50.
  • Prepayment fee. This is a fee to pay off your loan early. It’s not common for personal loans.

Personal loan interest rates vs APR: What’s the difference?

The key difference between interest rate and APR boils down to the fees you get charged.

  • Interest rates. Your interest rate represents the amount you pay to borrow money from your lender. This amount doesn’t include any fees you’ll need to pay to get your loan.
  • Annual percentage rate (APR). Your APR is your interest rate plus any fees you must pay to take out the loan. APR is often used to show the true cost of your loan and may be higher than your interest rates alone. The maximum APR you can be charged for a personal loan in Canada is 60%.

How much personal loan can I get in Canada?

People can typically borrow between $500 and $50,000, though lenders vary in their minimum and maximum loan amounts. How much personal loan you’ll get approved for will depend on your personal financial situation.

Who can get a loan in Canada?

You can get a loan in Canada if you meet the following:

  • Canadian citizen or resident
  • At least 18 years old
  • Have a recurring income

How much you’ll be charged for a personal loan rate will depend on multiple factors.

Bottom line

Personal loan interest rates vary widely based on factors such as your lender, loan amount, term length and personal financial situation. Compare lenders to get the best rate for you.

Frequently asked questions about personal loan rates in Canada

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