While Canadians benefit from basic universal healthcare benefits, not all procedures are covered. Medical loans in Canada offer financial assistance for people facing healthcare expenses that aren’t fully covered by provincial health insurance or workplace benefits. From dental work to vision care to unexpected medical procedures, these loans help bridge the gap when costs become too much to handle.
Key Points:
- Medical loans help cover healthcare costs not paid by provincial healthcare plans, such as dental care, vision services, cosmetic procedures, and alternative therapies.
- Multiple financing options are available, including personal loans, lines of credit, home equity loans, credit cards, in-house clinic financing, and small interest-free cash advances.
- Medical loans make sense when care is urgent, but borrowers should consider repayment and possibly insurance or benefits coverage before taking on additional debt.
What Are Medical Loans In Canada?
Medical loans are essentially personal loans that are used to cover healthcare expenses that aren’t fully paid for by provincial insurance or private benefits. They provide access to funds to cover treatments like dental work, vision care, therapeutic treatments, or specialist procedures, helping Canadians manage essential medical costs more comfortably.
What Types Of Medical Procedures Are Eligible For Financing?
While basic procedures may be covered under provincial health insurance plans, many others are not, though they may be eligible for coverage with a medical loan.
Here are a few examples of procedures you can cover using funds from a medical loan:
- Elective surgery
- Cosmetic surgery
- Basic dental care
- Cosmetic dental surgery
- Fertility treatments
- Hair restoration procedures
- LASIK eye surgery
- Dermatological procedures
- Chiropractic services
- Physiotherapy
- Acupuncture
Types Of Medical Loans In Canada
When it comes to financing a medical procedure, you have several loan options. Which one you choose depends on what is available to you as well as your financial needs. Below are some of your medical procedure financing options.
| Loan Type | Loan Amounts | Interest Rates | Loan Terms |
| Personal Loans | $500 — $35,000 | 9.99% — 35% | 6 months–5 years |
| Lines Of Credit | Varies based on collateral & credit worthiness | Varies based on collateral & credit worthiness | Flexible repayment terms |
| Home Equity Loans | Up to 80% of the home’s appraised value, minus the mortgage balance | 4.99% — 16.99% | 5 — 20 years |
| Small Cash Advances | $250 — $750 | 0% | Flexible repayment terms |
| Credit Cards | Depends on credit limits | 19.99% — 24.99% | By payment due date to avoid accrued interest |
| In-House Financing | $1,000 — $25,000+ | Varies | 6 months — 6 years |
Personal Loans
A personal loan is a common choice for Canadians who need to cover the cost of a medical procedure. These loans provide a lump sum of money that is repaid in fixed installments over a set term.
You can choose a secured or unsecured personal loan, depending on your situation:
- Unsecured Personal Loans: These loans don’t require any collateral, which means you qualify based on your income, credit history, and overall financial stability. Because there’s no asset backing the loan, lenders typically charge higher interest rates.
- Secured Personal Loans: If you have less-than-perfect credit and own a valuable asset, like a vehicle, a secured loan could be a great option. Your asset will act as collateral and therefore allow you to gain access to a larger loan with more favourable terms and conditions.
Learn more: Unsecured vs. Secured Loan: What’s The Difference?
Lines Of Credit
A line of credit is a flexible borrowing program that lets you access a set credit limit you can draw from whenever you need it. You only pay interest on the amount you use, making it useful for ongoing or unpredictable expenses, like medical procedures.
Small Credit Lines
If the cost of your medical procedure is minimal, you may consider a smaller, interest-free credit line, like MoneyUp or Nyble:
- Nyble: Nyble offers small cash advances of up to $250 that can be used to cover lower-cost medical treatments.
- MoneyUp: MoneyUp‘s FastForward is a credit line of up to $1,000 that lets you get part of your paycheque before payday. You can then use the funds to pay for a medical procedure.
Home Equity Loans
A home equity loan is a type of secured loan that lets you borrow against the equity you’ve built in your home, giving you a lump sum of money at a fixed interest rate. Because the loan is backed by your home, interest rates are typically lower than unsecured loans thanks to the lower risk for the lender.
Home equity loans are often used for major expenses and come with predictable monthly payments over a set term. This may be a good option if your medical procedure is particularly expensive or if you have bad credit. Just keep in mind that your home is at risk of seizure if you fail to keep up with repayments.
Small Cash Advances
Another great option that you might consider if your borrowing needs are lower is a small cash advance app. These platforms provide small funding with no interest and no credit checks, making them ideal if you have a lower credit score or just need a few hundred dollars.
- Bree: Bree is an online service that offers small, no‑interest cash advances of up to $750 to help cover short‑term expenses, like a small medical treatment.
- KOHO Cover: KOHO Cover gives you a small, interest‑free cash advance of up to $250 that you can use to cover a medical procedure.
Credit Cards
If you have an emergency medical procedure to cover or are looking for a convenient short-term solution, a credit card could be an option. Just keep in mind if you can’t pay off the full balance by the due date, you’ll spend significantly more for the procedure due to accrued interest.
In-House Financing
Some clinics provide their own installment plans, while others partner with third‑party financing companies that allow you to spread payments over weeks or months. These options can make treatments more affordable when paying upfront isn’t possible. Plus, you can arrange for financing in the same place without having to explore outside financing options.
Requirements For Medical Loans In Canada
To be eligible for a medical loan, you’ll need to meet certain criteria, including the following:
- Be a Canadian citizen or permanent resident
- Be the age of majority in your province
- Have a valid Canadian address
- Have an active bank account
- Have a steady income
Depending on the lender, you may also need a certain credit score in order to qualify, though some lenders work with borrowers with all credit score ranges.
How To Compare Medical Loans In Canada
Before applying for a loan to finance a medical procedure, be sure to carefully assess the following factors first:
- Interest Rates: The interest rate on the loan is a critical factor to determine, as it will have a direct impact on the overall cost of your medical loan. As such, you’ll want to find a loan that comes with a low rate to keep costs to a minimum.
- Fixed vs. Variable Rates: In addition to the actual rate itself, you’ll want to determine whether the loan you’re considering is a fixed-rate or variable-rate loan. Most personal loans come with fixed rates, which means the payments remain the same throughout the term. A variable-rate loan, on the other hand, means the interest can fluctuate throughout the term, and therefore the payments can also change.
- Additional Fees: Loans often come with other fees in addition to interest, such as loan origination fees and early prepayment penalty fees. Find out if any of these fees apply to your loan before you commit, as these extra fees can have a big impact on the overall cost of your loan.
- Loan Terms: Long-term loans mean you’ll have more time to repay the loan, but you’ll pay much more in interest over the term. With shorter-term loans, on the other hand, you’ll be loan-free much sooner and pay a lot less in interest, but your monthly payments will be much higher.
- Funding Time: How quickly do you need the funds? Find out how long a particular lender will need to process your loan and deposit the funds into your account to ensure the loan aligns with your needs.
| Pro Tip: The quickest way to compare loans is to use an online loan comparison platform, like Loans Canada’s CompareHub tool. You can also use this tool to find out your credit score for free before applying for a medical loan in Canada. |
How Can You Find Out If A Medical Procedure Is Covered By The Canadian Health Care System?
As mentioned, Canada offers basic healthcare benefits to its residents that cover many basic medical costs, which are covered under provincial and territorial plans. However, not all medical procedures are covered, as mentioned.
In general, here are some common services that are and are not covered:
| Covered Procedures | Procedures Not Typically Covered |
| – Doctor appointments – Specialist appointments – Maternity services – Medically necessary hospital stays – Prescription drugs during hospital stays – Medically necessary surgery – Illness treatments | – Routine dental care – Eyecare – Chiropractic treatments – Medical examinations for employment purposes – Doctor notes – Ambulance rides – Special medical equipment – Medication (many exceptions apply) |
To learn more about what is covered by your province or territory, check out your respective health care plan online. This information can be found by visiting your respective province or territory’s public health website.
| Note: Some medical expenses that are not covered by your provincial healthcare plan might be covered by your employer, if applicable. Before going through the trouble of searching for financing, check to see if your benefits will cover the costs. |
| British Columbia | Learn More |
| Alberta | Learn More |
| Saskatchewan | Learn More |
| Manitoba | Learn More |
| Ontario | Learn More |
| Quebec | Learn More |
| New Brunswick | Learn More |
| Nova Scotia | Learn More |
| Prince Edward Island | Learn More |
| Newfoundland and Labrador | Learn More |
| Yukon | Learn More |
| Northwest Territories | Learn More |
| Nunavut | Learn More |
When Should You Get A Medical Loan In Canada?
Taking out a loan means adding more debt to the pile and extra bill payments every month. As such, you don’t want to take out a loan if it’s not really necessary. On the other hand, there are some very good reasons for applying for a medical loan, including the following:
You Need Immediate Medical Attention
Aside from medically-necessary treatments that are covered under provincial healthcare plans, other procedures may still be needed right away. If you don’t have the funds readily available to cover these costs, a medical loan may be worth exploring.
You Can Afford The Loan Payments
If the added monthly payments of a medical loan fit comfortably within your budget, then taking out a loan to cover the cost of a medical procedure might make financial sense. Just be sure to get an accurate idea of the exact total of your monthly payments — including interest and other fees — before committing.
To Consolidate Your Medical Debt
If you already have some high-interest medical debt on the books, applying for another medical loan at a much lower interest rate might make sense. You can then use that lower-rate loan to pay off any existing debt you have and consolidate your debt into one easily-managed, more affordable loan. In turn, you can pay off your outstanding debt a lot faster.
Is It Worth It To Purchase Medical Insurance?
Buying medical insurance can be worth it if you regularly face healthcare costs that are not covered under your provincial plan, such as dental work, prescription drugs, vision care, or alternative therapies. While Canada’s public system covers essential medical needs, many everyday health expenses can add up quickly without additional financial protection.
Private medical insurance can help reduce out‑of‑pocket costs and offers peace of mind during unexpected health issues. For those with ongoing treatments, families with children, or anyone wanting more comprehensive coverage, a private medical insurance plan can be a valuable financial safeguard to consider.
Final Thoughts
The majority of necessary medical costs are covered in Canada, but there are several exceptions. If your particular medical need is not covered and you don’t have the funds available to pay for it, a medical loan in Canada may be worth considering. Just be sure to weigh the costs against your financial situation to ensure you’re not getting yourself in unmanageable debt.
