Compare personal loan costs
Real Canadian lenders and marketplaces, with the rate ranges they were publishing in October 2026 — checked against Ratehub, Loans Canada and lender websites. The honest spread in this market runs from about 6% at a bank to nearly 40% APR at a non-bank lender, so compare the total cost of borrowing, not just the monthly payment.
Seven real providers, compared
| Provider | Type | Published rate range | Amounts | Known for |
|---|---|---|---|---|
| Big Six banks (RBC, TD, Scotiabank, BMO, CIBC) | Bank loans & lines of credit | ~6%–24% depending on bank and product | $3,000–$200,000 | Lowest rates for strong credit — but rates are quoted on application, rarely published |
| Tangerine | Online bank line of credit | From prime + 2% (6.45% at October 2026 prime) | Varies by approval | One of the few lenders that publishes its line-of-credit formula |
| Fig Financial | Online lender | 8.99%–29.49% APR | $2,000–$35,000 | Fully online application, no fees, soft-check rate quote |
| Loans Canada | Loan marketplace | Partner offers roughly 9%–35% APR | $500–$50,000 | One application shopped across many lenders; useful when your bank says no |
| Spring Financial | Online direct lender | From 9.99% APR (Ratehub lists to 34.95%) | $500–$35,000 | Accepts all credit histories, no fees, same-day e-Transfer funding; check your actual offer carefully |
| easyfinancial | Non-bank direct lender | 9.99%–35% | $500–$20,000 unsecured | Branch network plus online; secured and unsecured installment loans |
| Fairstone | Non-bank direct lender | Unsecured 29.99%–39.99% APR; secured 19.99%–25.99% | $500–$25,000 unsecured; $5,000–$60,000 secured | 250+ branches, fair-credit borrowers, no prepayment penalty on unsecured loans |
Ranges compiled October 2026 from Ratehub's personal loan table, Loans Canada lender pages and provider websites. The rate you are offered depends on your credit score, income and debts. Since January 1, 2025, the maximum legal rate in Canada is 35% APR — a range that tops out higher usually mixes an interest rate with fees, so always compare the APR in the actual offer.
What the rate does to one loan
Same loan — $10,000 over 36 months — at three points in the ranges above:
- At 9.99% (strong file at a bank or online lender): $323/month, $1,614 of interest
- At 19.99% (secured non-bank pricing, e.g. Fairstone's secured range): $372/month, $3,377 of interest
- At 34.99% (top of the licensed range): $452/month, $6,283 of interest
The monthly payments differ by $129; the total cost differs by $4,669. That is why the rate — not the payment — is the number to negotiate and compare. Run your own figures in the loan payment calculator.
Compare these items
- APR, not just the interest rate — APR folds in mandatory fees; it is the only number that compares cleanly across lenders.
- Loan term — a longer term cuts the payment and grows the interest, as the example above shows.
- Origination or administration fees — Fig Financial and Spring Financial advertise none; some non-bank lenders charge them, which is why their APR exceeds their interest rate.
- Early repayment rules — Fairstone's unsecured loans have no prepayment penalty; secured loans usually do.
- Total amount repaid — principal plus all interest and fees over the full term.
Do not submit an application until you have reviewed the lender's current terms. This page carries no affiliate links.
Secured vs. unsecured personal loans
An unsecured personal loan requires no collateral — approval rests on your credit history, income and existing debts, and rates reflect that risk to the lender. A secured loan is backed by an asset (such as a vehicle or your home equity), which usually means a lower rate but puts the asset at risk if you cannot repay. The gap is visible in Fairstone's own pricing: 19.99%–25.99% secured versus 29.99%–39.99% APR unsecured. Lines of credit are a related option: revolving credit you draw on as needed, with interest charged only on what you use.
Match the product to the purpose. A one-time expense with a fixed cost (a furnace replacement, for example) suits an installment loan with a fixed end date; ongoing or unpredictable needs may suit a line of credit — but revolving credit demands more discipline.
What determines the rate you are offered
Two borrowers can be quoted very different rates for the same loan amount. The main drivers are your credit score and history, your income stability, and your debt-to-income ratio. Shorter terms also tend to carry lower rates than longer ones. Because each lender weighs these factors differently — a bank prices off prime (4.45% in October 2026) while a non-bank lender prices the risk of your file — comparing at least a few offers, from a bank, an online lender like Fig Financial, and a marketplace like Loans Canada, is where the savings usually come from.
Be cautious with offers that seem unusually easy to get: very high-rate installment loans and payday-style products can cost several times more than a mainstream personal loan. If your credit is weak, a smaller loan you can demonstrably repay may be a better first step than a large one.
Frequently asked questions
What is a good personal loan rate in Canada in 2026?
Bank of Canada data on new chartered-bank lending puts the average personal loan rate near 7.8% for strong borrowers (June 2026). Ratehub's lender table shows bank ranges of roughly 6% to 24% depending on the bank and product, online lenders such as Fig Financial at 8.99% to 29.49%, and non-bank lenders such as Fairstone starting at 29.99% APR for unsecured loans. For good credit, anything under about 12% is competitive; above 30% APR is last-resort pricing.
Is Fairstone a payday lender?
No. Fairstone is a non-bank installment lender owned by Fairstone Bank of Canada, with more than 250 branches. Its unsecured personal loans run $500 to $25,000 at roughly 29.99% to 39.99% APR, and its secured (home-backed) loans run $5,000 to $60,000 at 19.99% to 25.99%. Unsecured Fairstone loans have no prepayment penalty. Those rates are far below payday-loan pricing but well above bank pricing — Fairstone is mainly for borrowers whose credit a bank will not accept.
Will checking my rate hurt my credit score?
Usually not at the quote stage. Marketplaces such as Loans Canada and online lenders such as Fig Financial and Spring Financial use a soft credit check to show you offers, which does not affect your score. A hard check — the kind that can nudge your score down a few points — normally happens only when you formally apply and accept a loan. Fairstone works the same way: soft check for the quote, hard check on application.
What is the maximum interest rate a lender can legally charge in Canada?
Since January 1, 2025, the criminal rate of interest in Canada is 35% APR, including most fees — charging more is a criminal offence. That is why licensed installment lenders top out around 35% APR. Payday loans are regulated separately by the provinces and are the main exception, which is why a two-week payday loan can still cost the equivalent of several hundred percent per year.
Should I take a personal loan or a line of credit?
Take a loan when the expense is one-time and you want a fixed payoff date — a furnace, a car repair, a debt consolidation. Take a line of credit when the spending is ongoing or unpredictable. Pricing overlaps: Tangerine's unsecured line of credit starts at prime plus 2% (6.45% with prime at 4.45% in October 2026), while bank personal loans for strong borrowers average near 7.8%. The risk with a line of credit is discipline — there is no required payoff date, so balances can linger for years.