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5 ways to get appliance financing in Canada

Here's how you can finance your household appliance if you're not looking to pay in cash. 

There are a number of ways to get appliance financing in Canada without tapping into your savings. The 5 most common forms of appliance financing include in-house store financing, personal loans, low interest credit cards, layaway and rent-to-own programs. Keep reading to learn more about the best option for you.

1. Get a personal loan

You can apply for a personal loan from a bank, credit union or private lender if you’re looking for appliance financing in Canada.

  • Bank. You’ll usually need a good credit score (660+) and regular employment to qualify. Some banks have minimum loan amounts between $3,000 and $5,000.
  • Credit union. Eligibility criteria are usually more flexible, and you may be able to borrow smaller amounts than you can with the bank.
  • Private lender. You can apply online and compare quotes from numerous private lenders. This could be the best option if you have bad credit and can’t qualify elsewhere.
ProsCons
  • Easy and convenient to apply
  • Compare various lenders to get the best rates
  • Same-day financing in some cases
  • No promotional low-interest period
  • Strict eligibility criteria in some cases
  • Might have to borrow more than you need due to minimum loan amounts

Compare lenders with low minimum loan amounts for appliance financing

1 - 4 of 8
Name Product Ratings APR Range Loan Amount Loan Term Broker Compliance Requirements
Spring Financial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
10.8% - 46.99%
$500 - $35,000
6 - 60 months
Requirements: min. income $2,000/month, 3+ months employed, min. credit score 550
Loans Canada Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
6.99% - 46.96%
$300 - $50,000
3 - 60 months
Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.
Requirements: min. credit score 300
LoanConnect Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
8.99% - 46.96%
$500 - $50,000
3 - 120 months
LoanConnect is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.
Requirements: min. credit score 300
easyfinancial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
9.99% - 46.96%
$500 - $100,000
9 - 120 months
Requirements: min. income $1,200/month
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2. Finance through the store

Many appliance stores will give you 0% or low interest in-store appliance financing in Canada. You’ll typically have 6 to 36 months to pay back what you owe before you start to incur interest.

ProsCons
  • Easy and convenient to apply
  • 0% or low interest in the first few months
  • Same-day financing
  • On approved credit
  • Admin fees
  • Limited to specific stores
  • High interest rates when promo period ends

Sample in-store financing

Check out some sample rates and fees for in-store financing below or get a more detailed list by visiting our A-Z list of store financing.

StoreFinance feature
Canadian Tire0% interest on 24 equal monthly payments when you spend $200 or moreShop Canadian Tire now
Best Buy0% interest over 3 – 18 months, admin fee between $29.99 and $99.99 applies to terms of more than 6 monthsShop Best Buy now
WayfairBuy Now Pay Later, installment loans, lines of credit and lease-to-own options availableShop Wayfair now
Home Depot0% interest for 12 months with Home Depot credit cardShop Home Depot now
The Brick0% interest financing for 18 – 36 months, admin fee of $0 to $249.95Learn more
Leon’s0% interest financing for 6 to 24 months, admin fee of $29.95 to $99.95Learn more

3. Use a low-interest credit card

Low interest credit cards come with rates that range between 8.99% and 12.99% (compared to 19.99% for regular cards). They let you pay more towards your principal balance so you can pay your appliance off faster.

ProsCons
  • Low interest rates
  • Easier to pay off
  • No need to apply for financing at time of purchase (just swipe your card)
  • Easy to max out a credit card
  • No 0% interest promo offer
  • Need to apply for the card in advance

4. Layaway

Putting an appliance on “layaway” means that you put a deposit down to hold it for later. Once you pay the appliance off in full – through regular monthly payments or a lump-sum amount – you can go in and pick it up. You usually won’t pay interest and you don’t need good credit to use this type of appliance financing.

ProsCons
  • Cash in on sales prices
  • No need to borrow money
  • Usually comes with 0% interest rates
  • Can come with service fees
  • Difficult and expensive to cancel
  • Appliance must be paid off in advance

5. Rent to own

Rent-to-own stores let you rent an appliance until you make a certain number of payments, at which point you’ll own the appliance. Just keep in mind that you’ll usually pay 2-5x as much through rent to own, and the store can repossess your appliance if you miss a payment.

ProsCons
  • Small monthly payments
  • Same-day financing
  • Qualify with bad credit
  • Usually 2-5x more expensive
  • Can include hidden fees
  • Item can be repossessed if you miss a payment

How do I get appliance financing with bad credit?

You can get all types of appliance financing for bad credit. Find out more about which one might be the best fit for your unique set of needs:

  • In-house financing. Some stores may be able to offer appliance financing if you have bad credit. However, some offers, such as 0% or low-interest financing, are on approved credit only, meaning you’ll need a good credit history to qualify.
  • Personal loans. If you have bad credit, you’ll have a harder time getting appliance financing through a bank or credit union personal loan. You can explore some of the best bad credit loans, but expect steep interest rates. It’s best to avoid this type of financing if you can.
  • Low interest credit card. If you already have a low interest credit card, this can be a good option to pay lower interest rates (usually between 8.99% and 12.99%). However, you may not be able to qualify for this type of credit card with bad credit.
  • Layaway. Layaway can be a suitable option for bad credit if you don’t mind waiting to get your appliance. You won’t pay interest in most cases, but you can still take advantage of sale prices. If you change your mind part way through or miss payments, you may face cancellation or restocking fees.
  • Rent to own. While rent to own might seem like a good idea, it can be much more expensive than buying an appliance outright. It’s best to avoid this type of appliance financing if you don’t want to pay 2-5x the ticket price.

How much do appliances cost?

Consult the table below to find out how much you’ll pay to buy various types of home appliances in Canada.

Home applianceCost
Washer$250 to $2,050
Dryer$200 to $1,750
Freezer$250 to $1,000+
Refrigerator$700 to $10,000+
Kitchen stove$795 to $10,000+
Dishwasher$425 to $1,595
Air conditioner$3,000 to $7,500
Microwave$85 to $400
Water heater$105 to $8,000+

Representative example: Ben finances a new washing machine

The smell of smoke filling his laundry room lets Ben know that the motor on his aging washing machine has burnt out. Rather than look into the cost of repairs, Ben decides it’s time to upgrade to a newer, more energy-efficient machine. He finds the model he wants and is ready to buy, but a recent car repair bill means his emergency savings account is running low.

Ben decides to split the purchase price up into regular monthly payments over a period of 12-24 months. He compares financing options from four lenders to find the most affordable financing plan that also suits his monthly budget.

Lender ALender BLender CLender D
Amount borrowed$1,200$1,200$1,200$1,200
Interest rate11.99%0%0%7.99%
Loan term36 months12 months24 months24 months
Admin fee$0$69.99$0$0
Total interest$234.65$0$0$102.41
Total cost$1,435.65$1,269.99$1,200$1,302.41
Monthly payment$39.85$105.83$50$54.27

Ben decides to get financing with Lender C. Not only is it the cheapest option overall, it also offers an affordable monthly payment amount.

Ways to save before you opt for appliance financing in Canada

Saving money is the best way to pay for an appliance if you want to avoid interest, fees and other expenses:

  • Make a budget. Make a budget to figure out how much you’re spending each month and where you can cut corners.
  • Plan your meals. Think about what you want to cook each week to spend less at restaurants and cut down on food waste.
  • Avoid unnecessary expenses. Limit how much you spend on “feel good” expenses such as entertainment, travel and dining out.
  • Sell items online. Look around the house for items you no longer need and may be able to sell for a decent price online.
  • Get a second job. Apply for a part-time job to supplement your income.
  • Cancel subscriptions. Look at your monthly credit card bill and see if there are any subscriptions you don’t use that you might be able to cancel.

Frequently asked questions

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