Your wedding day is possibly one of the most important and special days of your life, but it can also be one of the most expensive. If you feel as though you’re coming up short when it comes to the financial side of your wedding, then a loan may be worth considering. A loan can help you cover the cost of any part of your big day, from the venue to your honeymoon.
Let’s take a closer look at wedding loans and whether you should consider one.
Key Points
- A wedding loan is a type of financing used to cover wedding-related expenses, typically repaid over time with interest.
- Types of wedding loans may include installment loans, lines of credit, and home equity loans.
- To avoid or minimize loan costs, consider alternatives to wedding loans, such as balance transfer credit cards, crowdfunding, saving up, or requesting cash gifts instead of traditional presents.
Can You Get A Loan For A Wedding?
Yes, you can get a loan to cover the cost of your wedding.
A wedding loan is simply a personal loan that you use to pay for all things related to your wedding. Personal loans come in a wide range of forms for a wide range of borrowers, meaning that you should be able to find something perfect based on your current financial needs.
Personal loans can be either secured or unsecured using collateral. This means that you can use one of your assets as collateral to secure a loan, which can help improve your odds of approval at a lower rate.
Borrow Up To $50,000
What Is The Average Cost Of A Wedding In Canada?
According to the 2023 Global Wedding Report by The Knot, the average cost for a wedding in Canada is $19,000 (89 guests). This number can vary considerably based on factors like venue location, number of guests, food and beverages, and wedding style. Celebrations held in major urban centers, like Toronto or Vancouver, tend to be more expensive, largely due to more expensive venues and services.
Here’s How Much You Can Expect To Pay By Category
| Venue | $10,000 |
| Food | $7,000 |
| Photos/Video | $4,000 |
| Attire | $5,000 |
| Entertainment | $2,500 |
| Flowers | $2,000 |
| Misc. | $2,500 |
Best Lenders To Get A Loan To Finance Your Wedding
Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 9 – 78 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- $500 – $10,000
- Rate
- Up to 34.99%
- Term
- Up to 60 months
Calculate Your Wedding Loan Cost
Before taking on a loan, ensure your wedding loan payments fit within your budget. For example, if you can afford $400 payments a month, the amount you can borrow can vary heavily depending on the interest rate and your loan term length.
For example, this is approximately how much you could borrow with monthly payments of $400.
| 12% APR | 22% APR | |
| 2 years | $8,500 | $7,700 |
| 5 years | $18,000 | $14,500 |
Calculate your wedding loan costs with this personal loan calculator.
How To Get Approved For A Wedding Loan?
When you apply for a loan in Canada, the approval process varies from lender to lender. That said, here are some basic steps you can take to get approved for a wedding loan:
Step 1: Decide How Much You Can Afford To Borrow
Start by tallying up the approximate cost of your wedding, then weigh that amount against the potential cost of the loan you need and your income. Don’t forget to factor in any interest or fees the lender might charge, since they can significantly increase the final price of a wedding loan.
Step 2: Check Your Credit
Next, get your credit report and credit score from Canada’s credit bureaus. Make sure there are no errors or signs of fraud on your report, and that your score is in the 660 – 900 (good to excellent) range. If your score is in the bad range of roughly 300 to 600, it can be harder to get an affordable wedding loan.
So, it’s best to check your credit score and spend time raising your score by removing errors from your credit report, building your credit history, and paying off your existing debts before you apply.
| Tip: If you can’t afford or can’t qualify for a wedding loan by yourself, you can also consider applying for a joint personal loan with your soon-to-be spouse. This way, you’ll both act as co-borrowers and will be equally responsible for any debt, thereby reducing risk for the lender and increasing your chances of approval for a loan with good conditions. Keep in mind that if you or your spouse has bad credit, you might get denied or only qualify for a smaller loan with a higher rate and stricter terms. In that case, the spouse with better credit may have more luck applying alone. |
Step 3: Compare Wedding Loan Offers
When your credit and finances are strong, shop around with multiple lenders to compare loans. Some lenders have free pre-qualification tools to show you what kinds of loans, rates, and terms you’re eligible for.
Step 4: Submit Your Application
Once you find an affordable wedding loan, you can complete an application online. Applying is often easy, but it may take several hours or days depending on the lender and the size of your loan. Just make sure you choose a legitimate lender and fill in your application honestly.
Learn more: How To Apply For A Loan
Benefits Of Financing A Wedding
Here are some of the most positive aspects of getting a wedding loan in Canada:
- Flexible Use Of Funds: Since your loan will appear as liquid cash in your bank account, you can spend it on any wedding-related cost, like the venue, food, or entertainment.
- Lower Rates Than Credit Cards: Depending on your credit score, personal loans often come with lower interest rates compared to credit cards, helping you save on interest charges.
- Flexible Terms And Payments: Some wedding loans have repayment terms of about 1 to 7 years and penalty-free prepayments to help you save on interest.
Risks To Consider
If you’re planning on financing your wedding expenses, there are a few things you should consider before applying for a wedding loan.
- Additional Debt: A wedding is already expensive enough without adding the cost of a loan to it, which can put you and your spouse in debt for many years.
- Potentially High Rates: If you apply with bad credit or a low income, you could only qualify for small loans with far higher interest rates (if you’re eligible at all).
- Possible Credit Damage: Every wedding loan payment you miss could lower your credit score and make you less creditworthy when you apply for loans later in life. Plus, just the process of applying for a loan can hurt your credit score due to the credit check, though this effect is temporary.
Alternative Ways To Pay For Your Wedding
Aside from taking out a loan, there are other ways to pay for your wedding:
- Crowdfund: Though it may be hard for some, asking to borrow money from your close friends and family is one way of getting the money you need without having to take on a loan. Moreover, you can save on interest when you pay them back, as it is unlikely they will ask for interest.
- Save Up: In most cases, you have a year or two before your actual wedding day. This will give you enough time to save money to pay for all or at least part of the wedding. That way, you won’t have to take out a loan for the entire cost of the wedding.
- Use Credit Strategically: Consider using a credit card with a 0% introductory rate to borrow on credit and avoid long-term debt. Just make sure you’re able to repay the balance by the end of the promotional period.
Tips To Save On Wedding Costs
- Cut Costs: You can lower the amount of money you’ll need to borrow by cutting your wedding costs in inconsequential areas. For example, rather than having an open bar with high-end alcohol, you can opt for a limited-time bar that offers more regular alcohol.
- Cash Gifts: Ask guests to offer cash gifts instead of traditional presents to help you pay for the wedding.
- Tap Into Rewards: Use applicable cashback rewards from existing credit cards to offset costs, if possible.
Common Mistakes To Avoid When Financing Your Wedding
Taking out a loan to finance the cost of your wedding can help make your dreams come true for your big day, but without careful financial decisions, you can easily wind up in a financial hole. Be sure to avoid the following mistakes when taking out a wedding loan:
| Not Having A Budget | Without a clear budget, costs can spiral quickly. Set limits for each category, like venue, food, and attire, and track as you go. Consider the full cost of your wedding and make sure you only apply for a loan amount that you need, and not a dollar more. |
| Using Credit Recklessly | Putting everything on a high-interest credit card can lead to sky-high debt. Instead, look into lower-interest options, like personal loans or 0% interest cards. |
| Forgetting About Post-Wedding Expenses | The honeymoon, thank-you cards, photo albums, and even a home and future children should not be after-thoughts. Be sure to consider these high post-wedding costs before taking out a loan. |
| Focusing Only On Monthly Payments | Not considering the total repayment can create a false sense of affordability, hiding the true cost of the loan over time. This can lead to paying more in interest and fees, especially if you choose a longer repayment term. |
Bottom Line
The cost of a wedding can be very high, and as such, you may want to seek out a financial solution to help cover the cost. If you choose to take out a wedding loan, be sure to do some research and find a lender that’s right for you before you make any final decisions. Be sure to also have a budget planned out and know how much you need to borrow.
Wedding Loan FAQs
Will a wedding loan affect my credit score?
Can you get a wedding loan with bad credit?
What if I get rejected for a wedding loan from a bank?
Should I use my credit card to finance my wedding?
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC.
†On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.
In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
