Consolidating your debt can help make your finances more manageable. In this guide we break down some of the best debt consolidation loan options in Ontario for different types of borrowers. Compare interest rates, loan amounts, loan terms and more to find the right financing for you. We also cover other forms of debt consolidation available that don’t involve applying for a new loan.
A "Best for" pick is a partner that scored high in a category based on Finder Canada's data-focused personal loans ratings and review methodology. Our experts vetted 112 lenders and analyzed over 4,600 data points to find the best lenders across a variety of categories. A "Promoted for" pick is a partner suited for a category, but it is not a recommendation or indication it is the best. Promoted products are based on a commercial advertising arrangement. Keep in mind that our picks may not always be the best for you – it's important to compare for yourself to find a product that works for you.
How we found the best debt consolidation loans in Ontario
To find the best debt consolidation loans in Ontario, 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. Keep in mind, that the products listed are based on providers available through Finder and online in the Canadian loans marketplace. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.
Loans Canada is an online loan search platform with a large network of lenders. Fill out one application and get your matches for free. You can get a secured or unsecured debt consolidation loan. Full Review
Why it's one of the best
Get access to a large lender network. Loans Canada works with over 60 verified lenders.
Get approved. Receive personal loan offers that match your profile.
Work with an established company. Loans Canada has been in business since 2012. It has BBB accreditation with an A+ rating.
Easy online application
Quick deposits
High loan amounts
High rates for bad credit
No online quotes provided
Limited to its network
Loan amount
$300 – $50,000
APR
6.99% – 46.96%
Term
3 - 60 months
Min. credit score
300
Fees
No application, origination or brokerage fees
Turnaround time
Receive funds within as little as 24 hours.
Serviced provinces
All of Canada
Finalist — Best Personal Loan Search Platform category
Loans Canada earned the Finalist award in the Best Personal Loan Search Platform category in the Finder: Personal Loans Customer Satisfaction Awards 2023. Loans Canada scored 75.15% in the overall customer satisfaction score and secured a spot in Canada's Top 15 Best-Rated personal loan providers in 2023.
SkyCap Financial is a private lender of unsecured personal loans for fair to good credit scores, which you can use to consolidate debt. Full Review
Why it's one of the best
Work with a reputable lender. SkyCap Financial is known for its friendly, professional customer service and is BBB accredited with an A+ rating.
Get approved fast. Get your personal loan as soon as the same business day.
Get some leniency. Rather than fixating on your credit score, SkyCap will take a more holistic approach and look at your overall finances.
No prepayment penalties
Apply online in minutes
Funding on the same day or next day
People with good credit may get better offers elsewhere
High rates for lower credit scores
Loan amount
$500 – $10,000
APR
12.99% – 39.99%
Term
9 - 36 months
Min. credit score
575
Fees
No fees except $50 NSF fee
Turnaround time
24 hours
Serviced provinces
All provinces and territories except Quebec and Nova Scotia
Most Recommended + Best-Rated
SkyCap 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.
Spring Financial offers fast debt consolidation loans. If you don't qualify for a debt consolidation loan, however, it'll offer you its credit builder loan The Foundation. With this loan, you won't access the loan funds until after you've made all your payments on time. Full Review
Why it's one of the best
Get a loan from an established private lender. Spring Financial has been providing loans since 2015 with headquarters in Vancouver, BC.
Improve your credit score. Spring Financial reports payments to the credit bureaus so you can increase your credit score.
Get quick funding. If you provide the required documents on time, you can get your personal loan the same day you apply.
100% online
Fast funding via e-Transfer
No prepayment penalties
High rates for bad credit
C- BBB rating, received complaints about the credit builder loan
Loan amount
$500 – $35,000
APR
10.8% – 46.99%
Term
6 - 60 months
Min. credit score
500
Fees
No fees except $30 NSF fee
Turnaround time
Within 24 hours
Serviced provinces
All of Canada
Most Recommended + Best-Rated
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.
LoanConnect maintains a large database of lenders and matches you with several debt consolidation loan offers based on your unique profile. It's been in business since 2016 and is BBB accredited with an A+ rating. Full Review
Why it's one of the best
Save time. Your application will be cast wide and you'll get your results right after you apply.
Easily compare offers. Compare offers from multiple lenders and log in regularly to see if new offers are available.
Get approved. LoanConnect works with different types of lenders to help different types of borrowers find a loan.
Secured and unsecured options
Pre-approval in five minutes
Many bad credit loan options
BBB-accredited with an A+ rating
Fast funding
Not a direct lender
High rates for bad credit
Miss out on offers from lenders not partnered with LoanConnect
Loan amount
$500 – $50,000
APR
8.99% – 46.96%
Term
3 - 120 months
Min. credit score
300
Fees
No application, origination or brokerage fees
Turnaround time
Receive funds within as little as 24 hours.
Serviced provinces
All provinces
Most Recommended
LoanConnect made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.
Mogo is a Canadian fintech company that offers various financial products, including personal loans for debt consolidation. Loans are available for good and bad credit. Full Review
Why it's one of the best
Get an instant decision. Get a free quote within a few minutes without affecting your credit score.
Apply easily online. Set up an account within minutes and get approval and funding within one to two days.
Work with an established company. Mogo was founded in 2003 and is traded on the Toronto Stock Exchange.
Convenient mobile app
No prepayment penalties
Bank-level security
High rates for bad credit
Some negative Mogo reviews online
Loans are powered by Lendful and easyfinancial
Loan amount
$500 – $35,000
APR
9.9% – 46.96%
Term
6 - 60 months
Min. credit score
600
Fees
Non-sufficient funds fee of $20 to $50
Turnaround time
Within 24 hours
Serviced provinces
BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU
Best-Rated
Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.
goPeer is a peer-to-peer lending platform offering unsecured personal loans, which you can use for debt consolidation. Rather than borrowing from a direct lender, you'll borrow from multiple investors. People with strong finances are more likely to get approved since they have less risky applications. Full Review
Why it's one of the best
Get a competitive rate. This platform doesn't have the same high operating costs as brick and mortal financial institutions, so it can pass on those savings to the borrower via low rates.
Easy online application. You won't ever need to visit a branch to provide paperwork.
Flexible loan amounts. Borrow as little as $1,000 and as much as $35,000.
100% online
No prepayment penalties
Use the loan for any purpose, such as debt consolidation or making a large purchase
Higher rates for riskier profiles
Origination fees
Loan amount
$1,000 – $35,000
APR
8.99% – 34.99%
Term
36 - 60 months
Min. credit score
600
Fees
Origination fee varies No application or prepayment fees
Turnaround time
Receive a response within 24 hours of your loan application
Lendful offers debt consolidation loans to people with near prime credit. It's a legitimate option if you can't get approved by a bank, but you're looking for better options than bad credit loans. Full Review
Why it's one of the best
Work with a reputable lender. Lendful is a subsidiary of Peoples Group, a federally regulated financial institution, and has been in business since 1985.
Get approved with no impact to credit score. You can get a formal loan offer in as little as 1 business day without impacting your credit score.
Get a reasonable rate. Receive offers that match your financial situation.
easyfinancial helps Canadians access financing when banks or credit unions aren't an option. It offers secured and unsecured debt consolidation loans across Canada online and in hundreds of locations. Full Review
Why it's one of the best
Get a quick quote. Apply in minutes with no commitment and it won't affect your credit score.
Work with a well-known lender. easyfinancial is one of the biggest lenders of nontraditional personal loans in Canada.
Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
Secured and unsecured loan options
2% rate reduction with a co-applicant
BBB-accredited with an A+ rating
Steep rates for bad credit
Many negative customer reviews
Loan amount
$500 – $100,000
APR
9.99% – 46.96%
Term
9 - 120 months
Min. credit score
300
Fees
you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Turnaround time
Approval within 30 minutes
Serviced provinces
all provinces
Winner: Best-in-Class
easyfinancial was awarded the Winner award in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.
Kindred Credit Union offers various financial products and services, including debt consolidation loans, to residents of Ontario. You can apply if you have a good to excellent credit score. Full Review
Why it's one of the best
Get a great rate. Kindred's rates are competitive, but your finances will need to be in good shape to access them.
Choose between a fixed and variable rate. Lock in your rate with fixed or choose variable to adjust your rate with the Bank of Canada throughout your loan term.
Work with a reputable lender. Kindred has been serving Ontario residents since 1964 and has over 27,000 members. It's also transparent with its rates and is a Certified B Corporation, meaning it meets standards for positive social and environmental impact.
Clear rates on its website
Various loan types available
Riskier applications may not get approved
Not available across Canada
Loan amount
$5,000 – $35,000
APR
7.2% – 16.2%
Term
1 - 5 years
Fees
Unknown
Turnaround time
Varies
Serviced provinces
Ontario
Finder: Personal Loan Consumer Satisfaction Awards
In 2023, we completed the Finder: Personal Loan Consumer Satisfaction Awards — an annual ranking of personal loan providers in Canada, based on customer satisfaction feedback. Read more about these awards and the methodology used to find the best personal loan providers, based on customer service scores.
An unsecured debt consolidation loan lets you borrow money based on your credit score without any need for collateral. It comes with higher rates than a secured debt consolidation loan.
Features of unsecured debt consolidation loans in Ontario
How much it costs. Rates start at 9.75% for good to excellent credit. You may pay up to 46.96% with bad credit. You could be charged late payment fees and NSF fees.
Best for. It’s best for people with good credit who don’t have an asset to secure their debt.
How it affects credit score. On-time payments will increase your credit score. Late payments or defaulting will lower your credit score.
Pros. It comes with an easy application and flexible loan amounts. No assets are required for this loan. You can use funds to pay off any type of unsecured debt, such as credit cards, unsecured loans and utility bills.
Cons. It comes with higher interest rates than secured loans. It is difficult to qualify with bad credit.
Secure your loan with an asset such as your home or investments to get lower interest rates. Secured debt consolidation loans rely less on your credit score to qualify. Just be aware that your asset can be repossessed if you default.
A home equity loan is one of the most common secured debt consolidation loans in Ontario. Home equity is your house’s appraised value minus your mortgage balance.
Features of secured debt consolidation loans in Ontario
How much it costs. It starts at 6.99%. You could also owe appraisal fees, title search fees, prepayment fees, late fees and NSF fees.
Best for. It’s good for people with a valuable asset they can use as collateral to get a competitive rate.
How it affects credit score. On-time payments will increase your credit score. Late payments or defaulting will lower your credit.
Pros. It comes with lower rates than unsecured loans and comes with higher loan amounts on average. You have a better chance of approval if you have bad credit.
Cons. You could lose your asset if you default. The amount you get approved for is typically tied to your asset’s value.
3. Balance transfer credit card
Move your debts from several different credit cards onto a balance transfer card with a lower interest rate. Balance transfer cards come with a very low promo offer and rates tend to increase after 6–10 months. You’ll typically pay a fee to transfer your balances.
Features of balance transfer credit cards
How much it costs. The promotional rate is between 0% and 3.5%. After the promo, rates range from 8.99% to 19.99%. You could pay additional fees ranging from 1% to 3% of the amount transferred.
Best for. It’s good for people with good or bad credit who are dealing exclusively with credit card debt.
How it affects credit score. On-time payments will improve your credit score, while late or missed payments will lower it.
Pros. It comes with lower interest rates. You may be able to pay it off faster since less of the payment goes to interest. Many come with no annual fee.
Cons. It could have high balance transfer fees, and missed payments could incur higher interest rates. There are no same-bank transfers, and the promo offer will expire.
4. Debt management program
With a debt management program, financial experts review your budget and negotiate with your creditors to consolidate your unsecured debts into one monthly payment, with little to no interest. These services are typically provided by credit counsellors and debt management firms.
You’ll still repay everything you owe, but your payments should be more affordable.
Organizations that help with credit counselling in Ontario
These programs are usually non-profit, but you may have to pay fees for certain services.
Non-profit
Overview
Has helped over 850,000 Canadians reduce or eliminate their debt since 1996.
Basic services are free of charge.
You may have to pay for lawyers or other services as you progress through your debt management plan.
Has helped over 500,000 Canadians get out of credit card debt over the past 15 years
Free financial education resources and outreach programs
How much it costs. It’s free with a credit counselling organization, but you may have to pay for lawyers or other services as you progress through your debt management plan. You’ll typically pay a set-up fee and a monthly maintenance fee with a for-profit firm.
Best for. It’s good for people with a low credit score and struggling to keep up with debt payments.
How it affects credit score. Entering a debt management program will significantly lower your credit score, on the same level as a consumer proposal. It will be erased from your credit report two years after you complete the program.
Pros. It consolidates your debts without getting an additional loan and lowers your interest rates or extends your payment period. It stops punitive action by creditors.
Cons. It doesn’t cover secured debts like mortgages or auto loans. You may have to pay set-up or monthly maintenance fees. You’ll need to close any credit cards you include in your debt management plan. You won’t qualify for new loans while in a debt management program.
5. Debt settlement
Credit counsellors or debt settlement firms negotiate on your behalf with your creditors. You’ll pay off your debt in one lump sum that’s lower than your remaining debts. Unlike a debt management plan, you only repay a portion of what you owe. This can be a risky debt consolidation option because results are not guaranteed.
Organizations that help with debt settlement in Ontario
Company
Overview
Online website that connects you with services offering debt settlement in Ontario
No cost to get matched with providers
Doesn’t provide debt consolidation services or loans directly
Has helped over 850,000 Canadians reduce or eliminate their debt since 1996.
Financial experts negotiate with your creditors to offer a one-time lump-sum payment to settle your debts.
Accredited non-profit so basic services are free of charge.
Features of debt settlement in Ontario
How much it costs. Consultations are free but you could pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe. A private for-profit debt settlement company may charge you high fees even if it’s unsuccessful in negotiating with your creditors.
Best for. It’s good for people who are experiencing financial hardship, don’t want to go through a debt management plan or consumer proposal, and have a reputable organization to work with.
How it affects credit score. Debt settlement will significantly lower your credit score, on the same level as a consumer proposal. It will stay on your credit report for six years after you complete the program.
Pros. If you work with a reputable organization, you repay a fraction of what you owe.
Cons. Creditors can refuse to settle your debts, and you may pay high fees. A debt settlement company may advise you to stop paying your debts, which can result in legal action by your creditors. There could also be tax implications.
6. Consumer proposal
Consumer proposals are a formal, legally binding process administered by a legal firm called a Licensed Insolvency Trustee (LIT). The LIT works with you to develop an offer to pay creditors a percentage of what you owe or extend the time you have to pay off the debts (or both). These agreements cannot include secured debts like a mortgage or auto loan.
Companies that help with consumer proposals in Ontario
Company
Overview
Online website that connects you with services offering debt consolidation in Ontario
No cost to get matched with providers
Doesn’t provide debt consolidation services or loans directly
Helps with credit counselling, bankruptcy and consumer proposals
Open since 1999, it has helped over 60,000 Ontario residents get out of debt
Free consultation, but fees are undisclosed
99% creditor acceptance rate for consumer proposals
Features of consumer proposals in Ontario
How much it costs. Consultations are free, but your consumer proposal will include fees starting at $1,500.
Best for. It’s best for people experiencing financial hardship and have exhausted their options.
How it affects credit score. Entering a consumer proposal will significantly lower your credit score. It’ll stay on your credit report for three years after your final payment.
Pros. It reduces your overall loan amount or extends your payment period. Experts work with creditors on your behalf, and it stops punitive action by creditors. There’s also no interest. It’s a formal, legally binding agreement, unlike a debt settlement.
Cons. It doesn’t cover secured debts. Missed payments can cancel your agreement. You won’t qualify for new loans while in a consumer proposal.
How to choose the right debt consolidation option for you
Think about these questions to help choose the right debt consolidation in Ontario:
What kind of debt do you have? If you have exclusively credit card debt, a balance transfer card might be the best option. If you have a mix of unsecured debts, consider a debt consolidation loan.
Do you qualify for financing? Are you struggling to get approved for a debt consolidation loan or balance transfer card? Try to qualify with a few providers, and if you’re not successful, you may need to turn to the more serious options – debt management, debt settlement or consumer proposal.
How big is your debt? The more serious options need at least $10,000 in unsecured debt. If you have less than that, consider a debt consolidation loan.
Can you still afford your debt? If you’re still able to make payments on time, a debt consolidation loan could be a good fit. If you’re facing legitimate financial hardship, consider a debt management program, debt settlement or consumer proposal.
Do you have an asset to secure your loan? Secured debt consolidation loans let you secure your loan with collateral such as your house or vehicle to get lower rates. Just be aware that your asset can be repossessed if you default on your payments.
How much do you want to pay? You’ll end up paying fees (or interest rates) with most forms of debt consolidation. To avoid paying too much, your best option is to ask about fees ahead of time to get the best rate or go with a non-profit credit counselling service.
Can you live with a lower credit score? Some types of debt consolidation in Ontario can severely damage your credit. Avoid debt settlement, debt management plans and consumer proposals if you need to maintain a good credit score in the next several years.
Debt in Ontario
According to Equifax Canada, the average debt in Ontario in Q3 2023 was $21,482. Average debt in this province increased by 0.12% year-over-year, while the delinquency rate increased by 35.43%.
There are several options to consolidate debt in Ontario. To maintain your credit score, consider a debt consolidation loan or balance transfer credit card. If you're unable to qualify for a loan, think about establishing a debt management plan with a non-profit credit counselling firm. To reduce your overall payments, your options are debt settlement or a consumer proposal.
Interest rates for debt consolidation in Ontario typically run between 6.99% and 32%. However, some may reach as high as 46.96% if you have bad credit. The rates you get for your loan will depend on personal factors such as your credit score, income, debt-to-income ratio and whether you can secure your loan with an asset such as your house or vehicle.
Your eligibility for debt consolidation in Ontario will vary by lender, so it depends on who you go with. For example, some lenders may have minimum credit score or income requirements while others are more flexible. At a minimum, all lenders will require you to be a Canadian citizen or resident and the age of majority in your province to qualify.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
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