The interest rate you’re charged on a loan is one of the most significant factors that can impact the cost of your loan. As such, getting a low-interest rate is one of the best ways to make your loan more affordable. In some instances, you may be able to get 0% financing. But where can you get 0% interest loan offers, and can you qualify?
Key Points
- 0% financing means borrowing money to cover a purchase without having to pay any interest.
- 0% financing is available at car dealerships, furniture stores, electronics retailers, and for credit card balance transfers.
- Generally, you’ll need a strong credit score to qualify for 0% financing.
- These deals are typically restricted to specific products and may not always be offered.
What Are 0% Interest Loans?
As the name suggests, 0% financing means that you do not pay any interest on the loan. That means the lender will provide you with the funds needed, but will not charge any interest on what you borrow.
Basically, 0% interest allows you to pay what an all-cash buyer would be paying, with the difference being that you can spread out the payments in installments over time.
See How Much You Qualify For
Where Can You Get 0% Financing?
Zero-percent financing in Canada is offered in a variety of places. You can essentially find these types of offers from a myriad of retailers and lenders, including the following:
Small Interest-Free Loan Products
The following financial products offer small cash advances or credit lines with no interest, helping you save money while accessing quick funding:
| Bree | Bree provides interest-free cash advances of up to $500 to help you manage unexpected expenses. There’s no credit check or interest, making it an affordable option for quick financial relief. |
| Nyble | Nyble offers up to $250 through a small line of credit, with no credit check required, making it accessible even for those with poor credit. |
| KOHO Cover | KOHO Cover offers an instant, interest-free cash advance of up to $250 to help you manage short-term expenses. Access to KOHO Cover is subscription-based, starting at $2/month. |
| Money Up | MoneyUp features FastForward, an instant credit line of up to $1,000 that gives consumers early access to their next paycheque or government benefit. |
Learn more: Nyble vs. Bree: Which One Is Better?
Retailer Financing
You could get a 0% financing offer to purchase a big item through retail financing. Many furniture and electronics retailers offer 0% financing for their clients.
Below are a few stores that offer 0% financing.
Best Buy Financing
Best Buy Canada partners with Fairstone Financial to offer promotional 0% interest financing on select purchases. Financing terms are available for 3, 6, 12, or 18 months, depending on the item, purchase amount, and current promotions.
You’ll pay no interest as long as the full balance is paid off within the promotional period. However, if the balance isn’t paid off within that timeframe, interest will be charged retroactively from the date of purchase date, often at a steep rate.
Note: A credit check and approval are required to qualify.
*As of August 21, 2025. Offers subject to change.
Learn more: Best Buy Financing
The Brick Financing
The Brick offers flexible financing options in Canada through its partnership with Flexiti Financial, making it easier to afford furniture, appliances, and electronics. Both in-store and online shoppers may qualify for up to 18 months with no payments, or up to 36 equal monthly payments, all interest-free. During special promotions, these terms may be extended even further, giving you more flexibility to pay over time without added cost.
If you miss a payment, interest won’t be backdated to the purchase date, unlike many other retailers.
*As of August 21, 2025. Offers subject to change.
Ikea Financing
IKEA Financing partners with RBC and Afterpay to provide flexible and accessible financing options for Canadians:
- PayPlan by RBC: This flexible installment loan program is available for purchases between $500 and $20,000, with loan terms ranging from 12 to 48 months. Interest rates can be as low as 0% APR or 9.99% APR, depending on eligibility.
- Afterpay: Split your purchase into 4 interest-free payments, with the first payment due at checkout, then the remainder of the payments made every 2 weeks. Afterpay is available for purchases between $50 and $2,000, including services and taxes.
*As of August 21, 2025. Offers subject to change.
Leon’s Financing
Leon’s Financing makes big purchases more manageable thanks to flexible payment options through the Flexiti Card. Choose between the following financing plans:
- Deferred Payments: Leon’s current “Don’t Pay Until 2027” promotional plan allows you to delay payments while enjoying 0% interest during the promotional period. Choose between a 6- or 12-month no-payment term.
- Equal Payments: Split the cost of your purchase in equal payments over 12 or 24 months, with no interest charged.
*As of August 21, 2025. Offers subject to change.
WayFair Financing
Wayfair Financing offers flexible payment options to help you furnish your home without breaking the bank. More specifically, Wayfair is partnered with Afterpay and Klarna to provide Buy Now, Pay Later (BNPL) services to consumers.
With these BNPL options, you can split your purchase into 4 interest-free payments, made every 2 weeks. At checkout, select your preferred financing option. Approval is quick and doesn’t affect your credit rating, and you can pay off your balance early without penalty.
*As of August 21, 2025. Offers subject to change.
BNPL Options
Buy Now, Pay Later services have become a popular way for Canadians to make big purchases without paying the full amount upfront. These short-term financing options allow you to split payments over time, often with 0% interest, making them an affordable alternative to credit cards.
With a BNPL arrangement, you make a purchase and choose a BNPL provider at checkout. The provider pays the retailer, and you repay the provider in installments. Many retailers offer BNPL service options, like Amazon, Browns, Article, Structube and many others.
- Late Fees: Most BNPL providers charge a flat late fee if you miss a payment.
- Term Lengths: Most plans are pay-in-4 arrangements. Longer-term plans may be available, but generally come with a higher interest rate.
- Interest Rates: Many BNPL plans are interest-free if paid on time.
Examples of BNPL services include the following:
| Provider | Term | Interest Rate |
| Affirm | 4 payments over 6 weeks | 0% |
| Afterpay | 4 payments over 6 weeks | 0% |
| Klarna | 4 payments over 6 weeks | 0% |
Car Loans
Many car dealerships offer 0% financing on a car loan as a way to sell more vehicles. These offers are typically only available to those with good credit and finances.
However, it’s important to note that these offers often come with an introductory period, meaning the 0% only lasts for a certain period of your car loan term.
Learn more: 0% Car Financing Offers By Car Brand In Canada
Credit Card Balance Transfers
A credit card balance transfer involves moving outstanding debt from one card to another, usually to get a lower or 0% interest rate. It’s a great way to save on interest and pay off your balance faster. However, there are a few key factors to consider about credit card balance transfers:
- Promotional Period: The low or 0% interest rate applies only during the introductory period. Once this timeframe ends, the card’s regular interest rate will take effect, which is typically at least 19.99% and up. So, be sure you can repay the balance within the promotional period before applying.
- Fees: A on-time balance transfer fee applies, which is generally around 1% to 3& of the amount transferred. Crunch the numbers to make sure a balance transfer makes financial sense.
- Missed Payments: If you miss any payment due dates, this could void the promotional rate.
Are You Eligible For 0% Financing Offers?
Zero-percent financing deals aren’t available to everyone. Here are the common requirements:
- Creditworthiness: Borrowers often need excellent credit scores to qualify, as lenders want to minimize risk.
- Restricted To Certain Models: A 0% financing offer may be limited to specific products or brands.
- Down Payment (for car loans): Some offers may require a hefty down payment to secure the financing terms.
- Loan Term Limitations: Zero-percent interest rates usually apply only for a set promotional period. Once that period ends, higher interest charges will apply.
- No Additional Promotions: Combining this type of offer with other promotions may be restricted.
Benefits Of 0% Financing
Zero-percent financing has a number of benefits, including the following:
- No Interest: The obvious perk of 0% financing is the lack of interest. With zero percent interest, you could save hundreds of dollars or more in interest charges. You simply have to pay the cost of the item you’re buying.
- Spread The Costs: With 0% financing, you can spread the cost of a big purchase over a period of time, making payments more affordable.
Drawbacks Of 0% Financing
As attractive as 0% financing may be, it’s important to understand the potential drawbacks:
- You May Have To Pay Interest: Many 0% interest loans come with certain clauses, which, if you fail to adhere to, can lead to your offer being nullified. For instance, if you don’t fully repay within a specified period of time or make late payments, you may be charged interest.
- 0% Financing Isn’t Always The Best Deal: The actual prices for items being offered with 0% interest aren’t always the best. It’s not uncommon for the price of items to be hiked up a bit in order to offset the no-interest offer.
Can 0% Financing Affect Your Credit?
The interest rate you’re charged isn’t considered in the calculation of your credit scores. Rather, it’s how you handle your loans that can affect it.
- Hard Inquiry: When you apply for a loan or credit product, a hard credit check will be conducted. This can have a negative impact on your credit score, though only temporarily.
- Late Payments: Your payment history is a key factor in your credit score calculations. Missing a payment can drag your score down, while making on-time payments on your 0% financing product can strengthen your score.
- High Credit Utilization: A low credit utilization ratio is good for your credit. Keeping this ratio under 30% is recommended to keep your credit score high.
0% Financing Vs. Cash Rebates or Discounts: Which Is Better?
While 0% financing can be a great way to save money on a larger purchase, there may also be the option to choose a cash rebate or discount. It’s important to crunch the numbers in this scenario to make sure you choose the option that saves you the most money. Ultimately, the best option depends on your financial priorities.
- 0% Financing: A 0% financing program allows you to spread payments over time without paying interest, making it ideal if you plan to finance the full purchase. This can lead to significant savings over the life of the loan, especially for longer terms.
- Cash Rebates/Discounts: On the other hand, cash rebates or discounts reduce the upfront cost of the item and can be more beneficial if you’re paying in cash or using outside financing with a higher interest rate. Rebates also reduce the total loan amount if you choose to finance, which can reduce monthly payments.
Generally, you’re only allowed to choose one or the other, as these promotions typically cannot be combined. So, it’s important to calculate the total cost of each option based on your credit score, loan terms, and budget.
Is 0% Financing Right For You?
0% financing can be right for you if:
- You were already going to purchase the product that has a 0% financing offer attached to it.
- There is no “postponed interest” period after a 0% introductory period. Read the fine print to identify anything that mentions “deferred interest.”
- You have the financial capability to afford the purchase you’re making after careful assessment of your current finances.
Bottom Line
Snagging a 0% financing deal can certainly save you quite a bit of money in interest. But there are a handful of things to be mindful of, including promotional periods and restrictions on products available. If your finances are sound and you’ve been considering buying a particular item for a while, a 0% financing program may be a way to save some money, if available.
