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10 best debt consolidation loans in Canada

Get a lower 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 traditional lender.

10 best debt consolidation loans in Canada

Loan providerAPRLoan amountLoan termKey features
Fig: A Fairstone Bank Company12.99% - 31.99% $2,000 – $30,00024 - 60 monthsCompetitive rates for good to excellent creditGo to site

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Spring Financial10.8% - 46.96%$500 – $35,0006 - 60 monthsFast debt consolidation loans for any credit scoreGo to site

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LoanConnect8.99% - 46.96%$500 – $50,0003 - 120 monthsSearch platform for all credit, get multiple offersGo to site

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Loans Canada6.99% - 46.96%$300 – $50,0003 - 60 monthsSearch platform with the largest lender networkGo to site

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SkyCap Financial12.99% - 39.99%$500 – $10,0009 - 36 monthsAffordable payments, good customer serviceGo to site

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goPeer8.99% - 34.99%$1,000 – $35,00036 - 60 monthsP2P loans for debt consolidation, competitive ratesGo to site

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Mogo9.90% - 46.96%$500–$35,0006 - 60 monthsQuick quotes with no impact to credit, for good and bad creditGo to site

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easyfinancial9.99% - 46.96%$500 – $100,0009 - 120 monthsDebt consolidation of high-interest loans with bad credit

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Fairstone19.99% - 39.99%$500–$50,0006 - 120 monthsQuick quotes for fair credit

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Magical Credit19.99% - 46.80%$1,500–$20,00012 - 60 monthsOnline debt consolidation loans, many non-employment incomes are okayLearn more

How we found the best debt consolidation loans

Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. The providers shown on the best list are those who scored highest based on this data-driven methodology. They are providers that are available and not available through Finder, with partners listed first. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.

We also completed the Finder: Personal Loans Best-in-Class Awards 2024 and the Finder: Personal Loans Customer Satisfaction Awards 2023, which recognize the top personal loan lenders in Canada.

464+

hours invested

112

lenders vetted

4,608

data points analyzed

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 providerTime to debt-freeServices providedRequirements
Debt.ca12 - 60 monthsConnects 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 creditorsGo to site

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Consolidated Credit36 - 60 monthsCredit counselling, debt management, debt consolidation, consumer proposal and moreYou need help getting out of credit card debtGo to site

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10 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.

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1. Fig

Fig offers unsecured personal loans to prime borrowers, which you can use to consolidate debt. It’s a digital lender with a completely online process.

Best suited for: Borrowers with good to excellent credit

  • APR: 12.99% - 31.99%
  • Loan amount: $2,000 – $30,000
  • Loan term: 24 - 60 months
  • Loan types: Unsecured debt consolidation loans
  • Eligibility requirements: Min. income $5,000/month, 6+ months employed, min. credit score 700
  • Accepts bad credit: No
  • Where it’s available: Alberta, British Columbia, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan

Why it’s one of the best

Fig offers prime borrowers an easier online application process than many financial institutions. Get a pre-approval offer within minutes without affecting your credit score, and once you’ve submitted your loan contract, you can get your money within two business days. It is Better Business Bureau (BBB) accredited with an A rating.

Fig has no hidden fees and you can choose a repayment option that fits your budget.

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Other benefits

  • Offer is guaranteed for seven days
  • No fees aside from a $45 NSF fee
  • Flexible repayment options

What to watch out for

  • Fair or bad credit may not qualify

2. LoanConnect

LoanConnect is an online loan search platform. 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: 8.99% - 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

Why it’s one of the best

LoanConnect made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. It is a BBB-accredited company that works with multiple lenders to help you find the best debt consolidation loan for your situation. It’s free to use. Starting rates are low, ringing in at 8.99%.

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.

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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

3. Loans Canada

Loans Canada is an online loan search platform based in Toronto, Ontario. It 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 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

Why it’s one of the best

Loans Canada was the finalist in the best personal loan search platform category in the Finder: Personal Loan Customer Satisfaction Awards 2023. It has the largest network of lenders in Canada to help you find the best debt consolidation loan for your needs. Rates start low at 6.99% for good to excellent credit.

The company is accredited by the BBB and you can apply with any credit score. Just be aware that you may pay much higher interest when applying with bad credit.

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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

4. Spring Financial

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

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

  • APR: 10.8% - 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

Why it’s one of the best

Spring Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. Its debt consolidation loans are widely available in Canada. Fill out out a quick online application and get a response right after. Rebuild your credit score as you make on-time payments, and repay the loan in its entirety early without any penalties.

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Other benefits

  • Simple online application
  • Experienced lender
  • Flexible loan amounts

What to watch out for

  • High rates for bad credit

5. SkyCap Financial

SkyCap Financial is an online private 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: 12.99% - 39.99%
  • Loan amount: $500 – $10,000
  • Loan term: 9 - 36 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

Why it’s one of the best

Spring Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. This lender offers holistic loan decisions that don’t discriminate against borrowers with less-than-perfect credit. It lets you borrow up to $10,000 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.

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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

6. goPeer

goPeer is an online P2P 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 $35,000/year, no payday loan debt, min. credit score of 600
  • Accepts bad credit: No
  • Where it’s available: All provinces

Why it’s one of the best

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.

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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 34.99%
  • Origination fee baked into APR

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: $500 – $35,000
  • Loan term: 6 - 60 months
  • Loan types: Unsecured debt consolidation loans
  • Eligibility requirements: Min. income of $35,000 /year, min. credit score of 600
  • Accepts bad credit: Yes
  • Where it’s available: BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU

Why it’s one of the best

Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. 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 at any time without penalty.

Aside from its loan products, Mogo offers opportunities to grow your wealth through its Moka app and MogoTrade app.

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Other benefits

  • Low starting rates
  • Free quote with no impact on credit score
  • Funding in one to three business days

What to watch out for

  • High rates for bad credit
  • Some negative Mogo reviews online
  • Not all borrowers are eligible for the 100-day trial

8. easyfinancial

easyfinancial is one of the biggest and most well-known alternative lenders in Canada. It offers debt consolidation loans online and in hundreds of branches across Canada. It has been in business since 2006 and its parent company, goeasy, is listed on the Toronto Stock Exchange. It serves borrowers who need easy requirements from a lender, so expect to encounter steep interest rates if you apply for an easyfinancial loan.

Best suited for: Borrowers with bad credit looking to consolidate high-interest loans

  • 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 provinces

Why it’s one of the best

easyfinancial offers both secured and unsecured personal loans you can use to consolidate debt. It has a streamlined online application process so you can get approval in as little as 10 minutes. Improve your credit score as you make on-time payments. If you have a co-applicant, you are eligible for a 2% rate reduction.

Other benefits

  • BBB accredited with an A+ rating
  • Fast approval and funding
  • Rebuilds credit score

What to watch out for

  • Could lose your home if you default on a secured loan
  • Steep interest rates

9. 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:

Why it’s one of the best

Fairstone is an established direct lender, having been around for almost 100 years. It is widely available in Canada, and you can apply online or in person. When you apply to Fairstone, you can choose between a secured and unsecured debt consolidation loan. Apply and get your no-obligation quote within minutes.

Other benefits

  • Completely online
  • Get funding in 24 to 48 hours
  • Get a loan offer with no impact on credit score

What to watch out for

  • Homeowners preferred
  • Higher rates for lower credit scores
  • Secured loans require a visit to the branch

10. Magical Credit

Magical Credit is an online-only private lender offering installment loans of up to $20,000. It has been providing loans since 2014 and has offices in Concord, Ontario, and North York, Ontario. Magical Credit doesn’t do direct debt consolidation, but you can still use its loan to pay off your smaller debts.

Best suited for: People with fair to bad credit receiving regular non-employment income

  • APR: 19.99% - 46.80%
  • Loan amount: $1,500 – $20,000
  • Loan term: 12 - 60 months
  • Loan types: Unsecured debt consolidation loans
  • Eligibility requirements: Min. income of $1,200 /month
  • Accepts bad credit: Yes
  • Where it’s available: Canada-wide (excluding Manitoba, Saskatchewan and Quebec)

Why it’s one of the best

Magical Credit made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. It offers an easy online application process and is open to many types of non-employment income, such as employment insurance, CPP, OAS, child tax credit and private disability benefits. To increase your chances on a debt consolidation loan, however, it’s better to have employment income in addition to your non-employment income.

Other benefits

  • Minimal to no documents required
  • A+ BBB rating

What to watch out for

  • High interest rates for bad credit
  • Must not have active payday loans

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

Why choose Debt.ca

Debt.ca has been in business for over 20 years. It helps Canadians who are unable to repay their debts by connecting them to various debt relief options. It’s a solid choice for those who are seriously struggling with their finances and can’t qualify for any debt consolidation loans because they have bad credit and too much debt.

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Other benefits

  • Get connected to a service for free
  • Get help to reduce your debt payments

What to watch out for

  • Not a lender
  • Debts with collateral are not eligible
  • Creditors may be unwilling to negotiate

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

Why choose Consolidated Credit

Consolidated Credit is an established non-profit that has been helping Canadians for over 15 years. It is BBB-accredited with an A+ rating and is also a member of the Canadian Association of Credit Counselling Services (CACCS) and the Ontario Association of Credit Counselling Services (OACCS). It’s available across Canada, and you can get a free consultation with a counsellor to discuss your current financial situation.

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Other benefits

  • Explore the best debt relief options for you
  • Non-profit

What to watch out for

  • Not a lender
  • Debts with collateral are not eligible
  • Creditors may be unwilling to negotiate
  • Fees vary based on the debt relief option you choose

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 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 pay more with the debt consolidation loan. That’s why it’s important to carefully compare the best debt consolidation offers and not simply assume you’re getting a better deal on a new loan.

  • 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.

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 a debt consolidation loan

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 a debt consolidation loan 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 of a debt consolidation loan?

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

CriteriaSample 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 requirementsPay stubs, bank statements, tax returns
Meet minimum credit score requirementsConsent to have your credit score checked and provide your Social Insurance Number in some cases
Active bank accountDirect deposit information

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 (CSTQ2) 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

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