Personal Loan Brokers In Canada

Lisa
Author:
Lisa
Lisa Rennie
Senior Contributor at Loans Canada
Lisa has worked as a personal finance writer for over a decade, creating unique content to help educate Canadian consumers. Expertise:
  • Personal finance
  • Real estate
  • Mortgage financing
  • Investing
Priyanka
Reviewed By:
Priyanka
Priyanka Correia, BComm
Senior Editor at Loans Canada
As a senior member of the Loans Canada team, Priyanka Correia is committed to empowering Canadians with the knowledge they need to make smart financial choices.
Expertise:
  • Personal finance
  • Consumer borrowing
  • Consumer banking
  • Debt management
📅
Updated On: September 24, 2025
iCash

Ad Disclosure

Approval is not guaranteed and conditions apply.

British Columbia Residents: iCash offers payday loans in British Columbia (license number: 67639)

Ontario Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $500 loan of 14 days, the total cost of borrowing is $70, with a total payback amount of $570 and an APR of 365%. On a loan of 62 days, the APR is 82.42%.

Manitoba Residents: To learn more about your rights as a payday loan borrower, contact the Consumer Protection Office at 1-204-945-3800 or 1-800-782-0067 or at www.manitoba.ca/cca/cpo

Nova Scotia Residents: Payday loans are High Cost Loans. The maximum allowable cost of borrowing under the payday loan agreement is 14$ per every 100$ received, which means on a 100$ loan for 14 days, the total cost of borrowing is 14$, with total payback amount of 114$ and an APR of 365.00%.

PEI Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $300 loan of 14 days, the total cost of borrowing is $42, with a total payback amount of $342 and an APR of 365.00%. On a loan of 62 days, the APR is 82.42%.

The Cashback Program and Refer a Friend Program are not available in Manitoba, British Columbia and New Brunswick.

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Looking for the best personal loan without the hassle? A personal loan broker will do all the legwork for you, including comparing lenders, interest rates, and terms to match you with the right fit. Read on to find out more about what a broker is, how they can help, and whether using one makes most sense for you.


Key Points:

  • A personal loan broker is a middleman who connects borrowers with lenders, helping match them to loan options that suit their financial profile.
  • A loan broker helps you save time and money by connecting you to lenders who offer the most competitive rates and terms.
  • If you have poor credit, a broker can prove even more valuable, as they can find lenders willing to work with borrowers in your situation.

What Is A Personal Loan Broker?

A personal loan broker is an intermediary that connects a borrower and a lender to complete a financing transaction. In a way, a personal loan broker acts like a service provider because they seek out a lender option that best suits their client’s needs and qualifications. 


How Can A Personal Loan Broker Help Me?

Personal loan brokers help their clients navigate the different loan options provided by their lending network. You’ll only need to submit your personal and financial information once to the broker, rather than having to fill out multiple forms for various lenders.

This streamlines the tedious process, as you can also rely on your broker to do the research required to find a loan that best fits your needs. Using a broker to source your loan can also help you save money because it allows you to select the best deal from many different quotes provided by lenders.


Can A Personal Loan Broker Help If You Have Bad Credit?

Yes, a personal loan broker can help bad credit borrowers by matching them with lenders who offer loans for those with low credit scores. Working with a broker can streamline the process, boost your approval odds, and potentially help you secure more favourable loan terms and lower rates than you might find if you looked on your own.

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Personal Loan Brokers Vs. Direct Lenders

How do personal loan brokers compare to direct lenders? Let’s take a side-by-side look:

Personal Loan BrokerDirect Lenders
Who Funds The Money?Personal loan brokers do not lend the money; they simply connect you with a lender who is willing to lend to you. Direct lenders are the funder. 
Application ProcessWith personal loan brokers, you simply have to fill out one application to be connected to multiple lenders. With direct lenders, you have to individually apply to each lender. 
FeesMost personal loan brokers are free to use. However, these fees may simply be forwarded to the lender, who will charge you a loan origination feeDirect lenders often charge numerous fees, including administration fees, loan origination fees, and loan application fees. 

5 Steps On How To Choose A Good Personal Loan Broker

Choosing a good personal loan broker is important as it can affect the cost and terms of your personal loan. Here are 5 steps on how to select a good one.

Step 1: Check The Size Of Their Lender Network

A personal loan broker will do the fieldwork for you, which is why it’s important to choose one carefully. When searching for a personal loan broker, consider the size of their network. Ideally, your broker will have a wide lender network, which can increase your chance of getting a good deal.

Step 2: Look Into Types Of Loans & Interest Rates Offered

Find out what types of loans and interest rates the broker is able to offer to ensure they can connect you to a lender that suits your needs.

Step 3: Understand The Loan Conditions

Make sure that you’re familiar with the conditions of the loans that your broker is offering. For example, if you think you may pay off the debt early, then you will want to verify that you can do so without incurring any additional costs or penalties.

Step 4: Find Out The Funding Time

Some brokers will work faster than others to fund your loan upon approval. Generally speaking, online brokers can offer faster approvals compared to those that operate in person, like major banks.

Step 5: Assess Customer Service

Make sure that you are comfortable with the level of customer service that the broker provides because you may be dealing with them for the entire duration of your loan.


Pros And Cons Of A Personal Loan Broker

Using a personal loan broker offers several perks, but there are also some potential drawbacks to consider before taking this route. 

Pros

A loan broker offers the following benefits:

  • Saves Time: Personal loan brokers will do the legwork for you. They will search, negotiate, and find a deal that best works for you and your financial situation. They’ll also ensure that you meet the lender’s requirements and have all necessary documents.
  • It’s Free: In most cases, personal loan brokers do not charge anything for their services. They typically get paid through a commission by the lender you decide to borrow from.
  • Multiple Offers: With a single application, your personal loan broker can offer you multiple loan offers from different lenders that you can choose from.
  • Works With Any Credit: Whether you have bad credit or good credit, a personal loan broker can help connect you with a lender who is willing to lend to you. That said, you can qualify for the best rates with a good credit score. As such, it’s best to check your credit score before working with a loan broker.

Cons

Unfortunately, there are some possible downsides to using a loan broker:

  • Commissions: Many personal loan brokers earn their revenue through commissions. This may result in biased recommendations, as the broker may push lenders that offer them a higher commission.
  • Small Lender Network: If the personal loan broker you’re working with has a small lender network, it can lead to poor loan offers. When choosing a personal loan broker, ensure they have a large network of lenders.

How Much Does It Cost To Work With A Personal Loan Broker?

Personal loan brokers are typically compensated through commissions, which are paid by the lenders that they recommend borrowers to. As such, you likely won’t have to pay the personal loan broker yourself. Instead, you’ll be responsible for administrative or recurring fees charged by the lender.

Warning: Watch Out For Scammers
Scammers are becoming increasingly creative with their fraudulent attempts, so make sure that you do your due diligence to verify the validity of your loan broker. Potential red flags are as follows:
– Upfront fee required
– Unsecured websites
– No legitimate address
– No contact information
Learn more: Loan Scams In Canada

Other Types Of Brokers

Loan brokers are just one type of broker available that act as middlemen between consumers and professionals like lenders. Other broker types include the following:

Real Estate Brokers

A real estate broker is a professional who oversees agents within a brokerage and ensures that all transactions comply with legal and regulatory standards.

Investment Brokers

An insurance broker acts as an intermediary between clients and insurance providers. They work with multiple insurers to help you find coverage tailored to your needs, ideally with the most competitive rates. Insurance brokers in Canada are typically required to be licensed in the province or territory where they operate.

Mortgage Brokers

A mortgage broker is a licensed expert in the housing industry who operates through a mortgage brokerage. These professionals typically maintain strong relationships with many lenders, and help potential borrowers connect with these lending firms. They’re typically paid by commission once a deal is sealed.


Final Thoughts

If you’re in the market for a loan and like the idea of having access to a wide network of lenders, a loan broker can help. Otherwise, you can use an online loan comparison platform like Loans Canada to help you with your own research. Either way, be sure to compare loans and offers to get the lowest rate and best terms.


FAQs

Is it better to use a personal loan broker or find a lender myself?

Whether you should use a personal loan broker or shop around and compare different loan options yourself depends on the time you are willing to commit to the process. By using a loan broker, you can cut down on a lot of tedious work. Additionally, brokers with a wide lender network can help you source the best deal from a variety of quotes.

Do personal loan brokers work on commission?

Yes, personal loan brokers are compensated through commissions paid by the lenders. As the borrower, you should not be required to pay them any upfront fees. The commission that they earn is not directly added to the cost of your loan.

Are there any requirements to work with a personal loan broker?

Typical requirements for someone to work with a personal loan broker are that they are the age of majority in their province or territory, have a steady income, and are a Canadian citizen or permanent resident with a valid Canadian address. While loan brokers commonly work with individuals who have good credit, they can also help those with complicated financial situations and poor credit. Brokers will work to find a solution that meets your needs and qualifications, no matter what they might be.

Can a broker help if I have bad credit? 

Yes, many brokers specialize in finding lenders who work with borrowers with poor or limited credit histories.

How is a broker different from a lender? 

Yes, a broker doesn’t lend money directly, and instead helps you find a lender who will. 

Can I apply through a broker online? 

Yes, most personal loan brokers offer online applications that streamline the process.
Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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