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Compare loans for retirees

Retired but looking to take out a loan? Learn about the financing options available to you.

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As you reach retirement, your lifestyle changes and so do your finances. Your income will likely consist of CPP, Old Age Security (OAS) and any private pension and/or investment income you have. But what happens when you need a loan as a senior? It can be difficult to find loans for retired people – but there are some lenders willing to work with an alternate source of income like a pension.

Compare personal loans for retired seniors with a pension

Before applying for a loan as a retiree, it’s best to double check with a provider to see if they consider CPP, OAS and/or private pensions as a form of income.

Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score Link
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$50,000
3-60 months
No application or origination fees
300
Go to site
More Info
Loans Canada connects borrowers to lenders offering both secured and unsecured personal loans in amounts from $300 to $50,000. Submit one application to get rates from multiple lenders across Canada.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
$20,000
6 months - 5 years
None
560
Go to site
More Info
Fairstone offers unsecured personal loans up to $20,000
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 10.00%-46.96%
$50,000
3-60 months
No application or origination fees
300
Go to site
More Info
LoanConnect is an online broker that matches borrowers to lenders offering loans in amounts from $500 to $50,000. Get approved for multiple loan offers from different lenders in as little as 60 seconds with any credit score.
Cash Money Installment Loan
46.93%
$10,000
6 months - 5 years
Vary across provinces/territories
560
Go to site
More Info
Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
LendDirect Personal Loan
19.99% - 46.93%
$15,000
No end dates
None
560
Go to site
More Info
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
LendingMate Personal Loan
43% (British Columbia and Ontario) and 34.90% (Quebec)
$10,000
1-5 years
None
300
Go to site
More Info
LendingMate offers loans to Canadians with poor credit with no credit checks. Co-signer required for application.
Cash Money Line of Credit
46.93%
$10,000
6 months - 5 years
Vary across provinces/territories
N/A
Go to site
More Info
Cash Money offers line of credit loans up to $10,000 for AB, BC, NS, ON and SK residents. (Residents of MB or NB can apply in-store only.)
Fairstone Personal Loan (Secured)
19.99% - 23.99%
$35,000
3-10 years
Varies by province
560
Go to site
More Info
Fairstone offers secured personal loans up to $35,000.
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The 8 types of loans for retired seniors in Canada

If you’re hoping to take out a loan as a retired senior, you can look into these 8 options:

  1. Secured personal loans. Secured loans require you to provide some form of collateral – like a car or equity on your home – and in return you’re usually able to obtain a lower interest rate. Providing collateral makes you a less risky borrower, however your collateral can be taken from you should you fail to make your repayments.
  2. Unsecured personal loans. You don’t have to attach an asset to an unsecured loan, and you can use this loan type for any legitimate purpose. However, since it’s a riskier type of loan, you usually won’t get as low an interest rate as you would on a secured loan. Make sure to compare your personal loan options to get a good deal.
  3. Peer-to-peer loans. Peer-to-peer loans are funded by regular investors rather than banks or institutional lenders. An online marketplace will connect you with lenders who may finance your loan. You can usually get competitive interest rates and favourable loan terms.
  4. Car loans. If you’re looking to purchase a new or used vehicle, you can consider a car loan. These types of loans offer competitive interest rates because the vehicle you purchase is used to secure the loan.
  5. Reverse mortgages. Reverse mortgage loans offer you a line of credit or lump sum payment by borrowing against the equity in your home. But be warned: this is a high-risk form of borrowing, as you can quickly lose equity in your home.
  6. Short-term loans. If you have bad credit or need money quickly, a short-term loan might be worth considering. Also known as payday loans, these types of loans are famous for their excruciatingly high interest rates and their relaxed eligibility criteria.
  7. Debt consolidation loans. If you’re looking to consolidate your debt from multiple places into one single place, some loan options are specifically tailored for the purpose of debt consolidation.
  8. Cosigned loans. If you’re having trouble getting approved for a loan on your own, consider asking a family member with a higher income and solid credit score to co-sign for you on the loan. A co-signer can also help you get more favourable loan terms or qualify for a higher loan amount.

What types of retirement situations are considered for senior loans?

  • Self-funded retirees. If you earn income from investments, such as rental properties, or a private pension, you’re a self-funded retiree. When applying for a loan, make sure you have as much proof of your assets and income as possible to prove to the lender you’ll be able to manage the loan repayments.
  • Retirees receiving CPP and OAS. Be sure to check the eligibility criteria of the lender – not all consider CPP and OAS as a form of income. Having a private pension on top of CPP and OAS will help prove that you can manage repayments.
  • Retirees who work part-time. If you have steady employment – even if it’s only part-time – this income will be considered by lenders. Remember minimum income criteria may apply, so check this before submitting your application.

What type of income is acceptable when getting a loan for seniors?

When you borrow money as a reitree, having a form of income is necessary since you have to be able to prove that you can pay back the loan. Lenders want to see that you can comfortably pay back your loan and still pay for necessities in life such as food, housing and utilities.

Sources of acceptable income when applying for a loan as a retiree can include:

What forms of pension income is considered by lenders?

  • CPP. Throughout your working years, you will have contributed small amounts to your Canada Pension Plan. Some employers also contribute to your CPP, which will likely mean you’ll receive a higher amount than someone who’s employer did not contribute.
  • Old Age Security (OAS). Old Age Security provides additional retirement income to people of a certain age after they retire from their careers.
  • Private pensions. You may have also contributed to a private pension, either through your job or into a private RRSP. You’ll still receive both CPP and OAS in addition to being able to withdraw from your private pension.

There are a few lenders who will consider these benefits as a form of income when evaluating your ability to repay a loan.

Can I get a loan as as senior with bad credit?

If you’re a retiree with poor credit, it’s still possible to get a personal loan. Some lenders will only offer loans to those with bad credit up to a maximum amount, like $5,000, while others will offer more. Keep in mind you will often pay high interest rates with bad credit loans, since you’re considered a riskier borrower.

Compare personal loans for bad credit

The lenders in the table below offer personal loans to people with bad credit. As always, you should check to make sure the lender you’re interested in views CPP, OAS and/or private pensions as acceptable income.

Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 10.00%-46.96%
$50,000
3-60 months
No application or origination fees
300
Go to site
More Info
LoanConnect is an online broker that matches borrowers to lenders offering loans in amounts from $500 to $50,000. Get approved for multiple loan offers from different lenders in as little as 60 seconds with any credit score.
Fairstone Installment Loan
26.99%-39.99%
$20,000
6 months - 5 years
None
560
Go to site
More Info
Borrow up to $20,000 with a Fairstone Installment Loan.
LoanConnect Installment Loan
32% + brokerage fee
$2,500
3-6 months
No application or origination fees
300
Go to site
More Info
LoanConnect is an online broker that matches borrowers to lenders offering loans in amounts from 500 to $2,500. Get approved for multiple loan offers from different lenders in as little as 60 seconds with any credit score.
Loans Canada Installment Loan
8.00% to 46.96%
$50,000
3-60 months
No application or origination fees.
300
Go to site
More Info
Loans Canada connects borrowers to lenders offering installment loans in amounts from $500 to $50,000. Submit one application to get rates from multiple lenders across Canada.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$50,000
3-60 months
No application or origination fees
300
Go to site
More Info
Loans Canada connects borrowers to lenders offering both secured and unsecured personal loans in amounts from $300 to $50,000. Submit one application to get rates from multiple lenders across Canada.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
$20,000
6 months - 5 years
None
560
Go to site
More Info
Fairstone offers unsecured personal loans up to $20,000
Mogo Personal Loan
9.90% - 47.42%
$35,000
9 months - 5 years
NSF fee - $20 - $50
540
Go to site
More Info
Mogo offers loans up to $35,000 on flexible terms.
LendDirect Personal Loan
19.99% - 46.93%
$15,000
No end dates
None
560
Go to site
More Info
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
LendingMate Personal Loan
43% (British Columbia and Ontario) and 34.90% (Quebec)
$10,000
1-5 years
None
300
Go to site
More Info
LendingMate offers loans to Canadians with poor credit with no credit checks. Co-signer required for application.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
$35,000
3-10 years
Varies by province
560
Go to site
More Info
Fairstone offers secured personal loans up to $35,000.
Cash Money Installment Loan
46.93%
$10,000
6 months - 5 years
Vary across provinces/territories
560
Go to site
More Info
Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
Refresh Financial Credit Builder Loan
19.99%
$25,000
3-5 years
No administration or origination fees.
300
Go to site
More Info
No funds are provided by Refresh upfront. Instead, funds are placed into a secured account to be accessed later. Your payments are reported to the credit bureaus, potentially impacting your credit score.
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Linda and Grant, a retired married couple

loans for retired peopleAs a couple, Linda and Grant receive $1,500 in retirement income each month. They’ve paid off their house and have a small source of additional income from a rented-out investment property. While their payments are enough to support their lifestyle, they don’t have the means to make additional larger purchases. When their car stopped working, they considered taking out a loan to buy a replacement.

Option 1: They looked into an auto title loan to purchase a vehicle. Since an auto loan is a secured loan, they found they could get a competitive interest rate.

Option 2: They also looked into an unsecured loan option so that their car couldn’t be taken away in the event they fell behind on loan repayments. They looked into peer-to-peer loans, which can also come with competitive interest rates.

Ultimately, Linda and Grant decided on a peer-to-peer loan because they felt more comfortable borrowing money without having to attach collateral.

How to apply for a loan when you’re retired

Once you’ve compared lenders that accept pension, OAS and/or investment income as forms of acceptable income, you’ll need to make sure you meet the other eligibility criteria. You’ll also need to gather documents and then apply online. You can apply online for a loan in the table above by clicking the green ‘Go to site’ button, where you’ll be securely redirected to the application page.

Bottom line

Even if you’re no longer in the workforce, you can still apply for a loan as a retiree. Many lenders accept investment income, OAS, CPP and private pensions as forms of acceptable income, which means if you’re able to make your loan repayments and you meet the other basic eligibility requirements, you could be approved for the funds.

Want to learn more about loans? Head to our personal loans guide here.

Frequently asked questions about getting loans for retired seniors

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