{"id":745554,"date":"2018-08-23T04:05:45","date_gmt":"2018-08-23T08:05:45","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=745554"},"modified":"2025-04-16T16:13:09","modified_gmt":"2025-04-16T20:13:09","slug":"personal-loan-brokers","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/personal-loans\/personal-loan-brokers","title":{"rendered":"How to choose a personal loan broker"},"content":{"rendered":"

Finding a personal loan can take a lot of time and effort. A personal loan broker can cut the time you spend by adding in a middle man that can facilitate a loan for you. And if you don’t have the best credit or are facing a complicated situation, a loan broker may even be able to find you a loan you didn’t know you could qualify for. Keep reading to learn how to choose a personal loan broker in Canada.<\/p>

How does a personal loan broker work?<\/h3>

Personal loan brokers work similarly to mortgage brokers \u2013 they help you find a good deal on a personal loan by connecting you to a direct lender you qualify with. Personal loan brokers have a network of lenders that have set eligibility criteria for potential borrowers.<\/p>

If a personal loan broker in Canada finds a lender that might fit your needs, you’ll be presented with a preapproval offer. After this, you will likely have to finalize the offer with the lender directly, though some brokers are able to facilitate that portion of the process as well.<\/p>

Why should I consider a personal loan broker in Canada?<\/h3>

Lender connection services offer convenience. Rather than filling out multiple applications for a variety of lenders, you only have to fill out one application with a personal loan broker<\/strong>. You’ll receive your offers through the broker, which can save you time.<\/p>

Loan brokers can also help you get a better interest rate<\/strong> more efficiently by giving you several loan interest rate quotes at once so you can easily compare your options. Without a loan broker, you would have to fill out multiple loan applications, wait to receive all of the quotes and then manually compare rates yourself.<\/p>

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\nDive deeper: <\/span>Compare personal loan interest rates from different lenders in Canada<\/a>\n<\/div>\n<\/article>

It might be particularly useful if you have trouble meeting the standard eligibility criteria<\/strong> at larger financial institutions. This is because brokers tend to have a better understanding of the different lending requirements of various lenders, so they won’t recommend products that you are likely to be rejected for.<\/p>

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\nDive deeper: <\/span>Compare the best bad credit personal loans in Canada<\/a>\n<\/div>\n<\/article>

And to top it all off, using a personal loan broker is free<\/strong>. Instead of charging you, brokers receive a commission from the lender once you’re approved for a loan. You’ll save time without having to pay for the privilege of being connected to lenders.<\/p>

<\/a>How are personal loan brokers and direct lenders different?<\/h3>
<\/th>Personal loan brokers<\/b><\/th>Direct lenders<\/b><\/th><\/tr><\/thead>
Application process<\/b><\/td>One application could connect you with multiple lenders. It takes about 10 minutes to apply.<\/td>One application per lender. It takes about 10 minutes to apply with each individual lender.<\/td><\/tr>
Types of fees<\/b><\/td>Usually free of charge, although peer-to-peer lenders may charge an origination fee<\/a>.<\/td>Varies by lender. Fees can include an application fee, an origination fee, a prepayment penalty and a late fee.<\/td><\/tr>
Safety of your information<\/b><\/td>Websites are SSL-encrypted, but brokers will share your contact information with multiple lenders.<\/td>Websites are SSL-encrypted. They don’t share your information with anyone, and employees usually have restricted access.<\/td><\/tr>
Typical minimum qualifications<\/b><\/td>It depends on the lenders within the broker’s network.<\/td>Good to excellent credit, a regular source of income, at least 18 years old or age of majority, a Canadian citizen or permanent resident.<\/td><\/tr><\/tbody><\/table>

<\/a>How to find a good personal loan broker in Canada<\/h3>