Related: Best bad credit loans
Compare personal loans in Ottawa
Get a personal loan whether you have good or bad credit.
If you live in Canada's capital and you're looking for a personal loan, you have plenty of lenders to choose from. Your first instinct is probably to head to your bank. This isn't a bad idea as banks tend to offer competitive rates. However, they are not your only option, and if you have fair or bad credit, banks may even be out of reach.
In this guide, we cover a wide range of personal loans in Ottawa so you can compare lenders and find the best fit for you.
Compare personal loans in Ottawa
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How we picked theseFinder Score for personal loans
To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 40+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.
What are the best personal loans in Ottawa?
The best personal loans depend on your financial situation. If you have good to excellent credit, CIBC, Innovation Credit Union and BMO are highly rated financial institutions based on our Finder Score. If you have bad credit, the top choices include Spring Financial, Loans Canada, LoanConnect and easyfinancial.
Features of personal loans
- Loan terms: 3 – 60 months
- Loan amounts: $500 – $50,000
- Interest rates: 6.99% to 35%
- Maximum interest: 35% APR
- Types of loans: Secured or unsecured; fixed rate or variable rate
Types of personal loans
- Secured. Secured personal loans in Ottawa involve some sort of collateral, such as your investments or house, that acts as insurance to your lender in case you default. They are a common way to get approved for a personal loan, especially if you want to borrow a large amount, have a lower credit score or want the lowest rate. Lenders prefer houses as collateral (a “home equity loan”).
- Unsecured. Unsecured personal loans don’t require any collateral and come with higher interest rates than secured loans since the lender is taking on more risk.
- Fixed rate. If you prefer a predictable repayment plan, fixed-rate personal loans will lock in your interest rate at the beginning of your loan term, and your payments will stay consistent.
- Variable rate. With this loan, your interest rate will shift with the markets. Your payment amount will generally stay the same, but more will be allocated towards either the interest or principal, depending on whether your rate goes up or down.
Where to get personal loans in Ottawa
Below is a breakdown of the different types of lenders that operate in Ottawa.
What rates and fees can I expect with a personal loan in Ottawa?
Personal loan rates in Ottawa are 6.99% – 35%. How much you’ll be charged will depend on your personal factors.
Focus on the annual percentage rate (APR), which is your interest rate plus mandatory fees you’ll pay to get the loan. These fees can drive up the cost of your loan if your lender charges them (not all of them do).
- Have minimal NSF transactions. Your bank account must have little to no NSF transactions in the last two to three months.
- Have room in your budget. You must show the lender, through your current income and debt payments, that you have room to take on a bad credit loan. The lender will verify this by checking your bank statements.
- Have no payday loan debt. Having payday loan debt will lower your chances of approval.
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Comparing providers
Interest rates depend on your credit history as well as what type of loan you’re taking out (secured or unsecured) and the type of lender you borrow from. The example below illustrates the overall cost of a $5,000 loan over a 36-month term with four different providers.
| Lender | Interest rate | Monthly amount | Total cost |
|---|---|---|---|
| Credit union | 7.84% | $156.31 | $5,627.27 |
| Bank | 11.99% | $166.05 | $5,977.72 |
| Online lender | 19.99% | $185.79 | $6,688.53 |
| Peer-to-peer lender | 9.5% | $160.16 | $5,765.93 |
In this example, a credit union is the least expensive option. This is why it pays to compare a number of different options before settling on a provider.
Can you get bad credit loans in Ottawa?
Yes, but watch out for high interest rates. Lenders of bad credit loans in Ottawa charge more because they’re taking on more risk to lend money.
Types of bad credit loans you can get in Ottawa include personal loans and payday loans. Personal loans have lower APRs, longer loan terms and higher loan amounts. Payday loans in Ontario are easier and quicker to get, but they have much higher APRs, and you’ll need to repay the loan in full by your next payday.
Tips to get approved for bad credit loans in Ottawa
To maximize your chances of approval for bad credit personal loans in Ottawa, you’ll need the following:
Can you get loans in Ottawa with no credit check?
You can, but expect to pay high interest rates and make sure you’re applying to a legitimate lender. Scammers use “no credit check” to steal an applicant’s information, while predatory lenders use it to get you to take out a loan you can’t afford.
If a loan offer sounds too good to be true, it may not be legitimate.
What can I use a personal loan for?
Canadians use personal loans to cover a host of unforeseen or large expenses, including home renovations and car repairs. Some also use personal loans to consolidate debts at a lower rate. Also, personal loans are frequently used to help borrowers build their credit scores, particularly if the lender reports on-time payments to the credit bureaus.
If you want to take out a personal loan, only borrow as much as you’ll be able to repay in full by the deadline. You should always try to make your payments on time to avoid late payment fees and NSF fees, and make sure to communicate with your lender in advance if you think you’ll have trouble making your payments. If you default, your loan will be sent to collections, and you will receive a negative mark on your credit score, which can stay there for up to seven years.
How to find the best installment loans in Ottawa
With so many options, how do you decide which loan to get? Here are some questions to ask yourself.
How do I apply?
You can typically apply for a personal loan either in person or online. If you decide to borrow online, you can submit an application in as little as five minutes. Some lenders give approval and funding within 24 hours, while others take longer.
Before applying, be sure you meet the eligibility requirements and gather the necessary documents.
Eligibility requirements
- Be at least 18 years of age.
- Be a Canadian citizen or a permanent resident with a permanent address.
- Have a regular income.
- Have a working bank account.
Required documents
You may be asked to produce the following documents:
- Valid form of ID
- Pay stubs
- Bank statements
If you apply via instant bank verification, you won’t need to send documents.
How can I tell if a lender in Ottawa is legit?
There are some tell-tale signs you can look for to make sure a lender is legitimate and can provide loans in Ottawa, Ontario:
- The lender is registered. Visit Canada’s business registry to check whether the lender is a registered business.
- The lender can be contacted easily. The lender provides its address, phone number and email on its website.
- The lender has an online presence. Check consumer review sites like the Better Business Bureau and Trustpilot to see what existing customers have to say about the lender.
Watch out for unlicensed lenders
Taking out a personal loan can be a viable solution to a short-term financial problem, but it’s important to be aware of the risks associated with borrowing from unlicensed lenders:
- Illegally high interest rates or fees. If you’re being charged more than 35% APR on your personal loan, then it’s likely you’re dealing with an unlicensed lender.
- Identity theft. Be wary of lenders that ask for excessive personal information or seem a little off for whatever reason. Many unlicensed and online lenders have been known to steal customers’ personal information to sell to third parties, which could potentially lead to identity theft or a hacked bank account.
- Funds taken from your bank account without your permission. Lenders that don’t play by the rules are more likely to break provincial and federal laws, including withdrawing money from borrowers’ bank accounts if they’re unable to make repayments.
Unlicensed lenders can operate out of the province or even outside of Canada, making it difficult for Ontario to prosecute them. That’s why it’s so important to make sure your lender is licensed to operate in Ottawa before you borrow.
How to file a complaint against a lender
If you want to file a complaint against a lender, you can send a preliminary letter of complaint to the business. If they fail to respond, you can contact Consumer Protection Ontario, which will act on your behalf to contact the lender. If Consumer Protection Ontario finds that your lender violated provincial law, it could take legal action against the business. This includes revoking its license, slapping it with a penalty, and even filing a civil action to get a settlement for customers if the lender is facing numerous complaints.
Personal loan alternatives in Ottawa
If you’re feeling overwhelmed with unexpected expenses and can’t seem to get your head above water, a personal loan might not be the right option for you. Check out some of these low-cost alternatives before you head to your nearest lender.
Ottawa assistance programs
Ontario has some programs that can help lower the costs of everyday expenses for some residents and newcomers who are struggling to make ends meet.
- Child benefit provides low-income families with financial assistance to cover expenses like medical bills, food, rent and utility bills.
- Ontario Works can provide you with money and help you find a job during temporary financial difficulties.
- Resettlement Assistance Program provides financial assistance to refugees and protected persons for accommodations, essential clothing, household effects and living expenses.
- Income Assistance Program provides funding to First Nation communities to help their eligible members meet basic needs, such as food, clothing and shelter.
- Disability Income Support helps people with disabilities who are in financial need pay for living expenses, like food and housing.
Credit counselling
If you’re caught in a cycle of debt and can’t seem to keep your head above water, then you might like to consider a credit counselling program. These not-for-profit programs are designed to help low-income residents stay afloat while helping to manage and consolidate their debts.
Bottom line
If you find yourself in need of a personal loan, compare different lenders to find the best deal. Be wary of unlicensed lenders and know your rights before you accept the conditions of your loan. If you don’t think you can afford the repayments, consider a different financing option.
Dive deeper: Have time? Compare 40+ personal loans
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