Personal loans in Toronto can range anywhere from $500 to $50,000 or more, giving you the flexibility to use the funds to pay off debts, pay for a home renovation or take care of other expenses. Find out which providers offer personal loans in Toronto and how to compare your options to find the best fit for you needs.
If you’re searching for a personal loan, you’ll need to zero in on what type best suits your needs. Compare the loan types below and their key differences:
Unsecured loans are one of the most popular personal loans on offer. They typically come with higher interest rates than secured loans because they don’t require any form of collateral. The process of getting unsecured loans is also faster since lenders don’t have to estimate the value of your collateral. Instead, these loans rely on factors such as your credit score, income and debts to determine your eligibility.
As you search for personal loans in Toronto, you may encounter the term “installment loans”. Installment loans are unsecured personal loans offered by alternative lenders. These loans tend to have higher rates and more flexible eligibility requirements because they are designed for people with fair or bad credit below 660.
A secured loan involves some sort of collateral to secure your loan, such as your home equity or car title. With your assets as insurance, they come with lower interest rates. If you default on your loan, your lender has the right to repossess the assets you’ve put on the line.
If you can’t qualify for a personal loan in Toronto on your own, you can ask a close relative to cosign on your loan to act as a guarantor. If you default on your loan, your guarantor will have to pick up the slack, and both your credit scores will suffer if repayments aren’t made on time.
With fixed rate loans, you’re locking in an interest rate at the beginning of your loan term so your repayments stay the same throughout the duration of your loan. Some people prefer this because you have a set repayment plan for the life of your loan. Bear in mind that you may not be able to make early repayments or extend your term if you need it.
Variable rate personal loans have fluctuating interest rates throughout the term of your loan, depending on market conditions. That means the breakdown of your monthly payments will vary as your interest rate shifts. If your rate goes up, more of your payments will go towards the interest rather than the principal. Economists predict rate hikes this year, so if you get a variable rate now, be prepared for your rate to increase.
The most common personal loan lenders you’ll come across in Toronto include the following:
If you have bad credit, no credit or you’re dealing with a bankruptcy or consumer proposal, alternative lenders tend to have the most lenient qualifying requirements. Many offer a completely online application process. If you’re in Toronto, you can apply as long as the lender operates in Ontario and you have a reliable Internet connection. Alternative lenders offer personal loans with fixed rates.
Examples of online lenders that operate in Toronto include SkyCap Financial, Mogo, Spring Financial and FlexMoney.
Canada’s Big Five banks and other major financial institutions issue personal loans with fixed or variable rates. They often come with lower interest rates than alternative lenders, but they have strict eligibility requirements, especially expecting borrowers to have a higher credit score. It’s usually very difficult to qualify for these loans if you have bad credit.
Besides the Big Five, major banks in Toronto include National Bank.
Credit unions issue personal loans that are a little bit more flexible than big bank loans. To get a personal loan in Toronto from a credit union, you’ll usually need apply to be a member. Credit unions can have more competitive interest rates than big banks and alternative lenders, but you’ll need good to excellent credit. You can choose between a variable rate or fixed rate.
Examples of credit unions include Alterna Savings and Meridian.
While online lenders have plenty of personal loan options for Torontonians, you may prefer a lender with a physical location and in-person customer service. Here’s a look at the key players with branches, excluding the big banks:
| Lender | Loan features | Number of Toronto branches | Ratings* | Positive comments | Negative comments |
|---|---|---|---|---|---|
| Fairstone |
| 4+ branches | Generally 3.8/5.0 and above on Google 1.7 on Trustpilot | Professional and helpful | Surprising charges, unclear rates |
| easyfinancial |
| 15+ branches | Generally 4.6/5.0 and above on Google 1.8 on Trustpilot | Knowledgeable, helpful, easy process | High interest rates, overcharging |
| Money Mart |
| 15+ branches | Generally 4.6/5.0 and above on Google 4.5 on Trustpilot | Helpful and courteous | Bad service in some locations, high rates |
| Meridian Credit Union |
| 18+ branches | Generally 3.4/5.0 and above on Google 2.6 on Trustpilot | Helpful and pleasant | Confusing and unhelpful service in some locations |
| Alterna Savings Credit Union |
| 4+ branches | Generally 3.0/5.0 and above on Google 3.2 on Trustpilot | Friendly, supportive staff | Unresponsive in a few locations |
*As of February 2023
Promoted for
Flexible Terms
Promoted for
All Credit
Promoted for
Line of Credit
Promoted for
Excellent Credit
When you’re shopping for the best personal loan in Toronto for your needs, focus on these key factors:
You’ll find personal loan lenders in Toronto have their distinct set of requirements you’ll need to meet, but overall these are their baseline expectations:
If you’re having trouble qualifying for a personal loan, there are plenty of lenders in the Greater Toronto Area that provide bad credit loans. With bad credit personal loans, lenders will focus on your income and ability to repay your loan instead of your credit score. You will pay much higher interest rates because of the risk lenders are shouldering, though.
Your options for a bad credit personal loan in Toronto include the following:
| Type of loan | Loan amount | Loan term | Interest rate |
|---|---|---|---|
| Unsecured personal loans | $$500–$10,000 | 3 - 60 months | 18% to 47% |
| Secured personal loans (your house or car as collateral) | Varies based on the value of the collateral | 3 to 240 months | 9% to 49% |
Once you’ve done your research and found the personal loan in Toronto you want to apply for, follow these steps to begin. Bear in mind, these steps may vary depending on the lender:
Browse personal loans in Toronto
The cost of a personal loan in Toronto will be based on your personal factors, including the following:
Personal loan interest rates in Canada
Toronto personal finances at a glanceBetween credit cards, lines of credit and other loans (excluding mortgages), Canadians are swimming in debt. Credit reporting agency, Equifax Canada, reported on December 6, 2022 that the average Canadian consumer has $21,183 of debt.
The average Torontonian is shouldering $20,215 of non-mortgage debt, according to Equifax. Canada’s largest city trails behind the likes of Vancouver (22,754), St. John’s (23,737), Edmonton ($24,225), Calgary ($24,709) and Fort McMurray ($38,017).
According to the 2021 Census Profile from Statistics Canada, the average total income for Torontonians was $62,050 in 2020. This includes all types of income, such as employment, rental, investment, retirement and government benefits.
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