Does it cost more to use a personal loan broker?

No. Brokers make money through commissions, which are paid to them by the lenders they recommend. This is not directly added to the cost of your loan or interest rate. You'll be responsible for any administrative, monthly or other applicable fees normally charged by the lender.

Can I take out a loan from my current bank via a loan broker?

Brokers offer products from lenders within their network — that is, lenders that they have a relationship with. If your current bank is within the broker’s lender network and it offers a competitive product, then yes, you might end up getting an offer from your current bank. Keep in mind your loan broker should be looking for the best value option for you, whether that is your bank or not.

Can I stop using the broker’s services, or switch to another loan broker, once I have my loan?

This will depend on the terms and conditions of your contract. Make sure you read and understand all of them before you sign the loan contract. You may need to cancel the loan and take out a new one if you wish to change brokers.

What signs should I look for in a legitimate personal loan lender?

Any legitimate personal loan lender that abides by Canadian federal regulations will only issue a loan to you if they have your express consent in writing. They must also clearly disclose all costs, including any fees and the APR. You can find out more about legitimate personal loan companies, and how to spot a scam, in our guide personal loan scams here .