Compare The Best Providers For Personal Loans Ontario November 2021

Written By Bryan Daly
Renovation Financing

RenFi Home Loans

Renfi Capital is a lender that specializes in home renovation loans. It is the fastest mortgage lender in Ontario. They offer loans ranging from $25,000 to $150,000, with interest only payments at the low rate of 1% per month. Renfi works with a much wider range of credit types than conventional lenders.

Their platform is entirely online, making it easy, fast and secure.

  • $25,000 - $150,000 loans
  • Low credit scores accepted
  • Low rate of 1% a month
  • Open loan
Apply in 3 minutes, fully online process
15 minute approval, 72 hour funding
256 bit, end to end encryption

Loans Canada

Up to $50,000
2.00% to 46.96%
3-60 months

Consumer Capital Canada

$500 - $12,500
19.99% to 34.99%
No minimum term

Fairstone Financial

Up to $50,000
19.99% - 39.99%
6 - 120 Months


Up to $15,000
19.99% - 46.93%
No minimum term


$5,000 - $35,000
Starting at 9.99%
6 - 60 Months


$2,000 – $10,000
12 to 60 Months

Loan Away

Up to $5,000
19.9% to 45.9%
6 - 36 Months


$500 - $1000+
28 to 32%
3 Months

Mogo Finance

$300 – $35,000
5.9% to 47.72%
3 - 60 Months

Spring Financial

Up to $15,000
14.99% to 46.96%
6 - 12 Months

Ontario is the largest province in Canada with approximately 14 million Ontarians living there. It is considered an expensive province to live in due to the high cost of living, particularly in its major cities like Toronto, Brampton, Mississauga, Markham, Oshawa, Ottawa and Barrie. For a 2-bedroom apartment, rent alone can cost Ontarians $2,000 a month depending on the city they live in. Other costs like insurance, daycare, transportation and general activities can also have a big impact on cash flow for many Canadians in Ontario. If you’re struggling to cover certain costs or need extra cash to cover an expense, a personal loan can help.  

What Is A Personal Loan?

A personal loan is a lump sum of money provided by a lender in Ontario. You’re free to use the loan however you like, but you’ll need to repay the amount in installments over a period of time with interest. Getting a personal loan in Ontario can be a very effective financial tool when you use it wisely. It can not only cover your costs, but every full on-time payment you make may positively affect your credit. And when you have good credit under your belt in Ontario, you’ll have better chances of accessing affordable credit in Ontario. This is particularly important if you want to apply for a car loan or a mortgage in Ontario someday.

What Can A Personal Loan Be Used For In Ontario?

Personal loans come in the form of cash that is deposited directly into your bank account (ask your lender about their payment procedure). As such, you could use your personal loan to pay for any expense or activity in Ontario:

  • Pay your cell phone bill
  • Pay your water heater bill
  • Pay for a local trip in Ontario, whether you want to go camping at Ontario Parks, the Algonquin Provincial Park, Bruce Peninsula National Park or any of the other major parks in Ontario, a personal loan can make your trip affordable.
  • Education in Ontario is expensive. Many students rely on OSAP in Ontario, however, not everyone qualifies. A personal loan can help cover your cost of education in Ontario. 
  • Cover your car repairs and maintenance costs. In Ontario, auto insurance can cost an arm and a leg in certain cities like Toronto. Many Ontarians opt for less coverage as a result. If you have an accident and your auto insurance isn’t able to cover the entire bill, you could use a personal loan to cover the cost. 
  • Repairs or renovations on your home

How Large Of A Loan Can I Qualify For In Ontario?

The size of the personal loan that will be available to you depends on a number of elements, including but not limited to:

  • The quality of collateral (valuable assets) you offer if any
  • The regulations and procedures your particular lender follows
  • How easily you’ll be able to afford your loan payments, based on the state of your income, bank account, and credit
  • The state of your cosigner’s finances and credit (if you plan to use one) 

How Important Is A Credit Score To Get A Personal Loan In Ontario?

Lenders in Ontario often examine your score as part of their application procedure to determine your creditworthiness (i.e. the probability that you will fail to pay your personal loan in full by the scheduled due date). If you have a bad credit score, it can be difficult to get a personal loan from a bank in Ontario, however, there are alternative lenders in Ontario who look beyond your credit during their underwriting process. 

What Credit Score Is Needed To Receive A Personal Loan Approval In Ontario?

Normally, a score of 650 or above signals that your credit is solid and gives you the best opportunity for approval in Ontario, as well as a favorable interest rate. Depending on your lender, a score below that level may still be acceptable. However, your interest rate might end up being higher, ultimately making the loan more expensive over time.

Documents Required To Get A Personal Loan In Ontario

You already know that many lenders will inspect your credit health before approving your application. They’ll also be looking at:

  • Your bank statements from previous months/years
  • Your income
  • Your employment history
  • Your current and previous debts
  • Any other aspects of your financial livelihood that would help them get an idea of your ability to repay your loan

Personal Loans Application Check List

Should You Use A Personal Loan Or A Credit Card In Ontario? 

Depending on what your financial situation is, one form of credit will offer you better benefits than the other. In general, credit cards are better for smaller day-to-day purchases that you can afford to pay off in full within the billing cycle. On the other hand, a personal loan is better for expensive purchases that you’d like to break down in cost to make them more affordable.  

Pros And Cons Of Using A Credit Card In Ontario


  • Credit cards can help cover the cost of less expensive consumer goods. 
  • Gives you 30 days before you actually have to make a payment
  • Has added benefits such as travel insurance, reward points and discounts (depending on your card type)


  • It can hurt your credit if you stop making full payments. While sticking to minimum payments (or just above) will help you avoid penalties, it can cause your credit utilization ratio to go up which can negatively impact your credit. It can also lead you into a never-ending cycle of debt. For every dollar that goes unpaid, you’ll be charged interest.
  • If you stop making payments completely, your account may be sold to a collection agency, who may take legal action and try to garnish your wages.

Pros And Cons Of Using A Personal Loan In Ontario


  • They allow you the opportunity to pay for whatever you want, possibly larger expenses than your credit card limit or current income will allow
  • They usually come with lower interest rates than most credit cards
  • You’ll get your money in one lump sum, so you’ll know in advance exactly how much you would pay by the end of your loan term
  • Most personal loans are offered with different payment period options (monthly, semi-monthly, weekly, bi-weekly, etc.)
  • You may have the choice of using your assets (home, car, or other property) as collateral to secure your loan, possibly earning you an even better interest rate


  • Generally, there are more requirements to qualify for a personal loan than a credit card
  • Missed payments may negatively impact your credit.

How Does Bad Credit Affect Daily Life?

What Does Loans Canada Recommend?

Before you apply, it’s best that you prepare for the application procedure, so the whole process will go smoothly and you’ll look better in your lender’s eyes. You should:

  • Study your own credit report and credit score (both can be provided by Canada’s credit bureaus)
  • Take measures to improve your credit if it’s not already healthy (good payments for other accounts, disputing informational errors, etc.)
  • Pay off all your other pending debts and don’t rack up any more unnecessarily
  • Gather your essential financial documents and making sure all relevant information is accurate
  • Know in advance how much you’d like to borrow
  • Get a quote from your lender. Ask how much your loan might cost you over the length of your payment period (always factor in your interest rate!)

Frequently Asked Questions

Can I get a personal loan with bad credit in Ontario?

Yes, while it may be tough to qualify for a personal loan with a bank or credit union when you bad credit, there are many alternative lenders whose entire business model revolves around providing loans to individuals with bad or no credit. These lenders have different requirements than traditional financial institutions and approve their applicants on their overall financial health. Your level of income, your job stability and your debt level are some common factors they’ll use to determine your creditworthiness.

Should I get a payday loan instead of a personal loan?

While a payday loan has much lower requirements for approval, it is also the most expensive form of borrowing. It usually carries an APR between 400% to 600% and has an extremely short repayment period of 14-days. Many borrowers who use payday loans, often fall into the payday loan cycle and get trapped in a web of debt. On the other hand, a personal loan comes with much lower interest rates and longer repayment terms, which makes payments affordable and manageable.

How do I know I’m getting the best personal loan in Ontario?

Comparing lenders is one of the best ways to know if you’re getting a good deal for you. Interest rate, repayment terms, administrative fees, NSF fees and any other fees involved should be compared to understand which loan terms work the best for you.  While a low-interest rate with a short repayment term may work for one person, another may prefer a longer repayment period even if it means they get a slightly higher rate. Be sure the calculate the fees involved, as some lenders may offer a low rate but compensate it through high fees.

How To Apply For A Personal Loan In Ontario? 

If you want a personal loan to pay for something essential, the time to apply is now. Loans Canada can help set up with a lender in Ontario who can offer you terms and conditions that best meet your needs. Simply click the “apply today” button to get started!

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