Compare personal loans in Ottawa

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.

• Banks

  This is the most traditional way to get a personal loan. Bank personal loans have competitive interest rates, but they also have strict eligibility requirements, and the process is more involved. If you have bad credit, you may have to rule out banks in your search for a personal loan.

  A personal loan from a bank takes a few days to a few weeks, from the application submission to funding.

• Credit unions

  Just like banks, credit unions can offer low-interest loans in Ottawa. However, you may need to get a membership in order to access their products, and you also need to have good to excellent credit.

  A personal loan from a credit union takes a few days to a few weeks.

• Online lenders

  Online lenders have more flexible lending criteria than banks and credit unions. They are a solid option if you have fair or bad credit or if you want to compare loan offers across the different types of lenders.

  Online personal loans in Ottawa take one to two business days.

• Peer-to-peer lenders

  Peer-to-peer lenders are everyday Canadian investors who can fund your personal loan. goPeer is an example of a peer-to-peer lending platform. To qualify, you’ll need a good credit score, and if your finances are strong enough, you may be able to secure an interest rate that is lower than a bank’s.

  A peer-to-peer personal loan takes a few days to a few weeks.

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).

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:

• 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.
Related: Best bad credit loans

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.

• What is the interest rate?

  Compare APRs between lenders to make sure you’re securing a loan at a competitive rate. Personal loans in Ottawa for bad credit are typically 18% – 35%. On other hand, if your financial situation is strong, you can get rates from 6.99%.

• Am I eligible?

  Lenders have minimum credit score and income requirements, and some don’t service certain provinces or territories. Before applying, make sure you meet the requirements and that the lender offers personal loans in Ottawa.

• Are there any extra fees or charges?

  Fees can add unnecessary costs to your loan. You should aim to watch out for hidden fees and charges in your contract so that you’ll know what extras you’ll need to pay for before you sign up. If you have good credit, the fees to watch out for are late payment fees and NSF fees. If you have bad credit, fees to watch out for with bad credit loans in Ottawa are late payment fees, origination fees, NSF fees, broker fees, credit monitoring fees and surety fees (which is like a security deposit).

• What loan term fits my budget?

  The length of your loan term and how much money you can allocate to your loan repayments are important factors to consider. You’ll want to get the shortest loan term possible while still being able to manage the payments. The shorter the term, the less interest you pay overall.

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.

How to file a complaint against a lender