How To Finance An iPhone In Canada

How To Finance An iPhone In Canada

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated July 20, 2022

Smartphones can do just about anything these days, which is why a lot of Canadians stay up-to-date with the latest models. However, the prices of most smartphones are enough to make many people shy away from buying them. For instance, an iPhone can cost anywhere between $600 to $1,400 depending on the model.  While it is one of the most popular and versatile phones on the market, purchasing one outright is not always feasible.

If you’re looking to buy an iPhone but aren’t sure whether you’ll be able to afford it, here’s an article with some helpful information about how to finance an iPhone in Canada.

How To Finance An iPhone In Canada?

Although some models are pretty expensive, there are several types of iPhone financing you can acquire in Canada with the right qualifications. 

Can You Finance An iPhone Through A Personal Loan 

You can use a personal loan from a bank, credit union or alternative lender to finance an iPhone. Personal loans typically have an APR of 2% – 46%, which is assigned based on your creditworthiness. 

To finance your iPhone with a personal loan, simply use the cash you’re approved for to pay for the phone. Your lender will provide you with a lump sum of cash via direct deposit or email transfer which you can use to buy your iPhone, then repay in installments over a period of time.

Benefits Of Financing An iPhone With A Personal Loan 

  • Applicants with bad credit can still get a personal loan if they apply with an alternative lender. 
  • Personal loan terms, rates and conditions are more flexible than phone carrier plans.
  • If you obtain a low rate, your personal loan payments may be cheaper too. 
  • With a personal loan, you’re not locked into a cell contract, meaning you’re free to change or cancel plans without penalty. 

Drawbacks Of Financing An iPhone With A Personal Loan

  • Bad credit or a low income can get you denied for large loans and low rates. 
  • Some lenders have minimum loan amounts, so if your iPhone costs less than that amount, you may not be able to get a loan to finance your iPhone.    
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Can You Finance An iPhone Through Carrier Financing

Whether it’s your first phone plan or you’re switching providers, you’ll find plenty of different iPhone financing options with any of Canada’s major cell carriers, like Rogers, Bell and Telus. Most can offer you 0% interest for a limited period and other signup bonuses if you agree to buy a contract, most of which last around 2 years. 

Benefits Of Financing An iPhone Through A Cell Phone Carrier 

  • You can usually trade in older phones for discounts on new ones.
  • Large companies may offer a selection of iPhones and payment plans.
  • Negotiating, fast online purchasing and same-day pickup are also possible.

Drawbacks Of Financing An iPhone Through A Cell Phone Carrier 

  • Some carriers charge hefty fees to activate or upgrade an iPhone.
  • If you apply with bad credit, you might not be eligible for 0% APR or other perks. 
  • You’re locked into a contract until your balance is fully paid (includes upgrades). If you’d like to break your contract early, there may be penalty fees.    

Can You Finance An iPhone Through Apple Canada Financing

Apple Canada offers financing plans for new, old and certified refurbished iPhones. If you shop on their website, you can get $0 down financing through Apple Canada and PayBright. Plans come with instant approval, 0% APR for 24-months (with a minimum purchase of $99) and no additional fees. Just finance an iPhone in 24 equal payments.

Benefits Of Financing An iPhone Through Apple Canada 

  • Trade-ins may be possible.
  • If you qualify for extra financing, you can use it toward other Apple purchases.
  • Financing is available for other Apple products, like iPads and Mac computers. 
  • Good credit can get you a better payment plan and 0% interest for 24 months.  

Drawbacks Of Financing An iPhone Through Apple Canada 

  • Interest rates vary according to your credit (worse credit means no 0% financing).
  • Once your 0% financing term ends, you may have to start paying interest again. 

Can You Use Your Credit Card For iPhone Financing

It might be easiest and most convenient to buy your iPhone and cell plan using separate credit card transactions. Generally, credit cards come with interest rates between 18% and 22%, so this can end up being one of the more expensive options. But rather than getting locked into a cellular or loan contract, financing an iPhone with a credit card can be advantageous due to the following benefits. 

Benefits Of Financing An iPhone With A Credit Card

  • Some credit cards give you great rewards and bonus perks. 
  • Using your card and paying your bills responsibly can be good for your credit scores.

Drawbacks Of Financing An iPhone With A Credit Card

  • Certain cards have high rates of around 19.99% (9% – 15% for low-interest cards).
  • The sales price of some iPhones could exceed your credit card limit. 
  • It can be tough to qualify for a credit card if you have bad credit or a low income.

Can You Finance An iPhone Through Retailer Financing

You can also finance an iPhone at many popular stores, like Walmart, The Source and Best Buy. These places may offer gift cards, 0% financing for limited periods (subject to approved credit) and other incentives to get new clients. Keep in mind that big-box stores sometimes use third-party payment services and lenders that charge 20% – 30% APR.

Best Buy iPhone Financing

You can easily finance an iPhone using a Best Buy Card (provided by Fairstone). Watch out, as this program comes with some high administrative fees of $29.99 – $99.99, depending on your payment term. Best Buy interest rates:

  • 0% interest for 3 months on purchases of $149.99 or more
  • 0% interest for 6 months on purchases of $299.99 or more
  • 0% interest for 12 months on purchases of $399.99 or more
  • 0% interest for 18 months on purchases of $999.99 or more

The Source iPhone Financing

The Source lets you finance an iPhone in 12 or 24 equal payments monthly payments with purchase of at least $200. Since they’re partnered with PayBright, additional service fees may apply, as well as these interest rates:

  • 9.95% – 19.95% APR after promotional periods     

Walmart iPhone Financing

If you have a Walmart Rewards Mastercard and make a purchase of at least $200, you can finance an iPhone in 6 equal payments at 0% APR. While Walmart doesn’t work with any third-party providers, their service costs include:

  • 19.89% interest after promotional periods
  • 2.5% activation fee 

Cost Of Financing An iPhone 

Here’s a quick comparison to display the potential cost of iPhone financing in Canada. As an example, let’s say you’re buying a basic iPhone 13 with 128 GB of storage space: 

Personal LoanApple FinancingCredit Card
iPhone Sales Price$1,099$1,099$1,099
Interest Rate12% APR0% APR19.99% APR
Term24 months 24 months24 months
Monthly Payment$51.73$45.79 (approx.)$55.93 
Total Paid$1,241.52 $1,099$1,342.32 

iPhone Financing Tips

Here are some things you can do to save money when financing an iPhone in Canada:

  • Don’t Break Your Current Contract – If you’re in the middle of a cell contract, you could pay a penalty to terminate it early, so it’s better to wait until your term is over, then negotiate with your current carrier or switch providers entirely.  
  • Use Your Old Phone – If your old iPhone is in good shape, some cell carriers and retailers will allow you to trade it in for a lower price on a new iPhone. At the very least, you could score a 0% APR deal on iPhone financing for a limited time.
  • Reduce Your Storage Space – The more storage space you want, the higher your iPhone’s sales price will be. So, if you don’t need lots of space for media or already have a place to back up your data, try an iPhone with less storage.
  • Buy A Cheaper Model – You can also try downgrading your iPhone. Even though you may not have access to all the same perks as the top iPhones provide, buying an older or certified refurbished model can save you hundreds of dollars.

How Much Does An iPhone Cost In Canada? 

Apple offers a number of iPhone models varying in size and data storage. The more robust and high-performing you want your iPhone to be, the more it’ll cost you. Right now, iPhones go for $679 to $1,399. While you may luck out and find an older or used model from a third-party provider, not everyone can afford to purchase a new iPhone.

Price
iPhone 11From $679 
iPhone 12From $799
iPhone 13From $949
iPhone 13 ProFrom $1,399

iPhone Financing FAQs

Does Apple have financing in Canada?

Definitely! You can apply for several kinds of device financing through Apple Canada, which can be applied to any valid iPhone, iPad or Mac product. You can do this directly online through the Apple Canada website or by visiting your nearest Apple store.

Can I buy an iPhone in installments?

Yes, depending on the payment method you choose. For instance, most cell phone carriers and retailers offer plans where you can buy an iPhone over a predetermined schedule of 2 years. Alternatively, you can use a loan or credit card to purchase your iPhone, then repay that debt in installments, possibly over a more flexible term.  

How can I buy an iPhone and save money?

Apple doesn’t always offer discounts but there are ways to save money on an iPhone, like buying it on Black Friday. Many providers offer gift cards with minimum purchases too, so you may be able to buy a cheaper product to get a discount on an iPhone. If that doesn’t work, try trading in your older iPhone or buying a certified refurbished iPhone.   

How does the iPhone trade-in program work?

The Apple trade-in program is available for all Apple products, including iPhones. If you trade in an older-model iPhone, any approved trade-in value gets deducted from the price of a better model. Don’t forget that your old iPhone must be in good condition to qualify for a trade-in (Apple has a recycling service for broken or unwanted devices).

Wondering If You Should Finance An iPhone?

Despite their quality mechanics and user-friendliness, there’s no denying how pricey iPhones are, even if they’re older or used. Don’t worry, there are plenty of affordable ways to finance an iPhone in Canada, as long as you’re financially prepared. Otherwise, an iPhone might not be for you. Contact your phone provider for more information.

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and traveling the world in search of the coolest sights our planet has to offer. Bryan uses the BMO Cash Back Mastercard to earn cash back on everything from boring bill payments to exciting excursions. He is also a strong saver, holding both a TFSA and an RRSP account in order to prepare for his future while taking full advantage of tax benefits.

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