How to get a $75,000 personal loan

Personal loans in this amount aren’t easy to get approved for, and your finances will need to be in a strong position.

In this guide, we cover how to successfully get a $75,000 loan in Canada.

How to get a $75,000 personal loan

You can get a $75,000 personal loan from banks and credit unions. You can apply online to start, but for a loan of this size, your financial institution may require you to do an interview at a branch or through a phone call.

Since $75,000 is on the high end for a personal loan, the process will take longer and require more documents than loans of a smaller amount. The purpose of this is to gather more information on your income and financial stability to ensure that you can take on a loan of this size.

Can I qualify?

To increase your chances of qualifying for a $75,000 loan, you’ll need the following:

• Have a good to excellent credit score. Generally, you need a credit score over 660. The higher, the better.
• Have a DTI below 20%. Lenders are open to a debt-to-income (DTI) ratio under 40%, but you have more luck getting approved if your DTI is under 20%.
• Have a sizeable income. The higher your monthly living expenses, the greater your salary needs to be to cover these as well as your loan repayments. If you live in Ontario and make $55,000 per year, your monthly take home pay will be around $3,500. After covering your regular expenses, there won’t be much left for repaying a $75,000 loan. On the other hand, if you earn $80,000, your monthly take-home pay will be around $5,000, which makes it much easier to cover sizeable loan repayments.
• Stable employment. Lenders want to see that you have a steady, full-time job. They also take into account career progression and current company.
• Positive net worth. If your net worth is over $75,000, you have a higher chance of getting approved.
• Collateral. Lenders may require you to use an asset as collateral, such as your home.

Must read: Best personal loans in Canada

Types of $75,000 loans

• Secured personal loan. This is a common way to get a loan of this size. A secured loan involves collateral, which reduces the risk for the lender. Borrowers typically use their house as collateral.
• Unsecured personal loan. Unsecured loans are less common for large loan amounts. Since an unsecured loan has no collateral, the lender charges a higher rate.
• Fixed-rate personal loan. With this loan, your interest rate will stay the same throughout the loan term.
• Variable-rate personal loan. With this loan, your interest rate will fluctuate with the markets. The main providers of variable-rate personal loans are banks and credit unions.

How much does a $75,000 loan cost?

How much your $75,000 loan costs depends on the loan term and annual percentage rate (APR) you qualify for. The longer the loan term and lower the APR, the less it’ll cost per month. A shorter loan term gives you higher repayments, but it will reduce the overall cost of your loan.

Let’s take a look at some examples of a $75,000 loan at 4.8% APR and 9.99% APR.

Loan term	Monthly repayment with 4.8% APR	Monthly repayment with 9.99% APR	Total interest paid with 4.8% APR	Total interest paid with 9.99% APR
3 years	$2,241.09	$2,419.69	$5,679.20	$12,108.73
4 years	$1,720.41	$1,901.83	$7,579.70	$16,288.01
5 years	$1,408.48	$1,593.16	$9,508.84	$20,589.56
6 years	$1,200.92	$1,389.06	$11,466.56	$25,012.29
7 years	$1,053.01	$1,244.70	$13,452.78	$29,554.91

As this table shows, you need to be able to afford monthly repayments of more than $1,000 to afford a $75,000 personal loan.

3 tips to pay off $75,000 in debt faster

A $75,000 loan can easily cost you five figures in total interest if you opt for a longer loan term. Consider signing up with a lender that doesn’t charge a penalty for paying off your loan early so you can get out of debt faster with one of these tips:

1. Pay every two weeks. Making biweekly repayments instead of paying once a month results in making two extra payments each year, which can help you pay off your loan ahead of schedule.
2. Sign up for autopay. Making sure payments come out of your bank account automatically can help you avoid making late payments or missing a payment by accident. Thankfully, many lenders require you to set up automatic withdrawal from your bank account to help you stay on track.
3. Use your tax refund. Put your tax refund toward your loan repayments to make one large extra payment each year.

How to pay off a personal loan early

Bottom line

A $75,000 personal loan isn’t as easy to qualify for as other amounts — you need a strong credit score and high enough income to afford repayments of over $1,000 a month. And watch out for long loan terms — it can more than triple the cost of your loan.

Want to learn more about how it all works? Read our guide to personal loans to compare more lenders and explore other options.

Frequently asked questions

• What is a good personal loan interest rate?

  It depends on your credit profile. However, only a few select borrowers get the lowest rates advertised by a lender. Knowing your credit score and debt-to-income ratio can help you estimate what personal loan rates to expect.

• Will paying off my loan early hurt my credit?

  No. In fact, it can help your credit by lowering your credit utilization ratio. Read up on how credit scores work to find out what factors affect your credit rating.

• Can I get a $75,000 mortgage?

  You can. In fact, $75,000 mortgages are more common than $75,000 personal loans. Since they typically come with longer repayment terms, your monthly cost might be more affordable if you're using the loan to purchase a home. Plus, mortgages are secured loans so you might be able to qualify for a more competitive rate.