Should You Get A Loan For Your Wedding?

Your wedding day is possibly one of the most important and special days of your life and we think that you should have everything you want. If you feel as though you’re coming up short when it comes to the financial side of your wedding then you need to look into applying for a wedding loan. This type of loan can help you cover the cost of any part of your wedding, from the venue to your honeymoon whatever you need help with.

Can You Get A Loan For A Wedding? 

A wedding loan is a small short-term personal loan that you use to pay for your dream 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 for your current financial needs. Better still, 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, typically secured loans and unsecured loans have slightly different terms and requirements so you can choose whichever option best suits your needs.

Types Of Wedding Loans

Since weddings can be extremely pricey, you might need to borrow money to help cover your expenses. In that event, there are a few different options you can choose, such as:

• Personal Loan – This loan lets you borrow a lump sum of cash, then repay it in installments over a set term, plus interest and fees. Funds are usually deposited directly into your bank account and rates vary based on your finances and credit.  

• Line of Credit – Like a credit card, this product lets you borrow from a revolving credit line in any amount you need. Interest only applies to your unpaid balances and you can make minimum or partial payments each month to avoid penalties.  

• Home Equity Loan – If you have enough equity in your home, you may be able to take out a secured loan against it. While the lender can seize the equity if you default, the rates and conditions can be better because you’re offering collateral.  

Best Lenders To Get A Loan To Finance Your Wedding

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Province AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundlandNova ScotiaOntarioPrince Edward IslandQuebecSaskatchewanNorthwest TerritoriesNunavutYukon Territory

Employment Status Full timePart timeSelf-EmployedGig WorkerUnemployedRetiredBenefits / EI / CERB

Monthly Income Less than $1500$1500 Or More$3000 Or More$4500 Or More

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Loans Canada

Amount

Up to $50,000

Rate

Prime to 46.96%

Term

3-60 months

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iCash - Best Quick Option

Amount

Up to $1,500

Rate

15% - 17%

Term

APPLY NOW

Available in seven provinces, iCash is an online source of fast, small loans that can be used for any emergency. Approved applications are processed within the same day and no documentation is required before the transfer of your funds. You can borrow up to $1,500 with iCash. Every time you pay the loan back following the agreed-upon deadline, you become a more reputable borrower. The increased trust allows you to borrow more each time. iCash uses a Trust Rating System, an algorithmic function that determines your merit as a borrower.

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Fora - Best Overall

Amount

$1,000 - $15,000

Rate

19.9% - 34.9%

Term

Varies

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If you’re looking for an open-ended line of credit with credit limits up to $15,000, Fora is the best choice. Fora’s line of credit lets you withdraw funds from your available credit, and repay and redraw as needed. This makes it an excellent option for those seeking flexibility and quick access to cash as needed. Moreover, interest rates start as low as 19.9% and are only charged on the amount you withdraw.

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Spring Financial - Best User Experience

Amount

Up to $35,000

Rate

9.99% - 46.96%

Term

9 - 78 Months

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Spring Financial is an online consumer lending company that offers innovative financial and credit-building solutions designed to give Canadians the opportunity to build credit, save money and borrow responsibly. With many Canadians struggling with high-interest debt and limited financing options, Spring Financial strives to provide Canadians with affordable and accessible financial products that can help them achieve greater financial freedom. Among their growing suite of smart money solutions, Spring Financial offers $1,500 cash advances, personal loans up to $35,000, and a credit-building program that helps you build credit and save money.

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Fairstone Financial - Best For Homeowners

Amount

Up to $60,000

Rate

19.99% - 39.99%

Term

6 - 120

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Fairstone is a great choice for consumers looking for loans with affordable payments that meet their needs and budget. As Canada’s leading non-bank lender of personal loans, consumers can get unsecured loans up to $25,000. Homeowners can choose a secured loan (backed by the value of their house) to borrow more money and access lower payments compared to an unsecured loan. Whether you’re looking to consolidate debt into one simple monthly payment, cover unexpected expenses or something else altogether, Fairstone is a great option.

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Bree - Best Interest-Free Option

Amount

Up to $350

Rate

No Cost!

Term

-

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If you’re short on cash, Bree offers cash advances of up to $350 with zero interest. Bree is an online financial platform that provides interest-free cash advances to help consumers avoid overdrafts and NSF fees. Their mission is to be a dependable and accessible financial source that consumers can trust when they need financial support. Moreover, you can access the money you need with Bree without having to worry about credit checks, interest charges or late fees.

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Mogo Finance - Highest Approval Chance

Amount

Up to $5,000

Rate

9.9% - 47.72%

Term

-

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The MogoMini line of credit offers Canadian consumers a great personal loan alternative. Borrowers can access up to $5,000, spend what they need when they need it, make the automatic minimum payments, and finally control their own principal payments. This Mogo product is flexible and users can test drive their line of credit for 100 days to see if it’s the right fit. Access their easy online application via your MogoMoney dashboard and get pre-approved in 3 minutes with no impact on your credit.

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easyfinancial

Amount

$500 - $100,000

Rate

9.99% - 46.96%

Term

Varies

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LoanMeNow - Best For Low Credit

Amount

$500 - $1000+

Rate

28% to 32%

Term

3 Months

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LoanMeNow offers Canadian consumers quick access to the cash they need. They offer loans up to $1,000 with no credit check required. Funds are deposited directly into your bank account within as little as 24 hours. A short-term loan from LoansMeNow can help you cover the cost of an unexpected expense or tide you over until your next paycheque. Whatever your financial needs are, LoanMeNow’s quick approval time means you’ll be able to get back on track as soon as possible.

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SkyCap Financial - Best Alternative Option

Amount

$500 - $10,000

Rate

Term

APPLY NOW

SkyCap Financial has been helping Canadian consumers take control of their financial futures since 2013. Their main goal is to provide alternative financing to all Canadians, regardless of their financial past or credit history. They provide fast and easy short-term loans ranging from $500 to $10,000 and approve applicants in as little as 24 hours. Consumers can take advantage of SkyCap Financial’s quick application and a team of experienced individuals who strive to make your experience as smooth as possible. SkyCap Financial bases all their lending decisions on three main factors, current income, credibility, and stability, so they can approve more Canadians, especially those who have been rejected in the past based on credit issues.

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Nyble - Best Credit Building Help

Amount

$250

Rate

No Cost!

Term

-

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Nyble helps users quickly access a line of credit of up to $250 without credit score requirements. This is a good option for anyone who wants to avoid overdrafts or needs a small amount of cash quickly. Approval is instant and funding takes up to 3 days. But if you upgrade to a paid membership for $11.99 a month, you can receive your money within 30 minutes. Nyble reports your payment history to the credit bureau monthly and approves you for large amounts as you build trust with the platform. You can also track your credit score, earn reward points for improving your score, and access other features such as credit monitoring and digital identity theft protection.

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goPeer

Amount

$1,000 - $25,000

Rate

7.5% - 31.5%

Term

36 - 60 months

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Can You Get A Wedding Loan With Your Spouse?

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 term. In that case, the spouse with better credit may have more luck applying alone.

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.    

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. While those offers aren’t always 100% accurate, prequalifying won’t affect your credit score. 

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.

Benefits Of Getting A Wedding Loan

Here are some of the most positive aspects of getting a wedding loan in Canada:

• Any Use – 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 Interest Rates – If you apply with a good income and credit score, you may be able to qualify for lower interest rates than most credit cards give you. 

• 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 Of Getting A Wedding Loan

If you’re planning on financing your wedding expenses, there are a few things you should consider before applying for a wedding loan. 

• A Wedding Loan Is Still A Loan. If you’re currently engaged and know that you’ll need a loan to help pay for your wedding you might want to consider working on your credit score to help improve your chances of being approved. There’s nothing worse than planning the wedding of your dreams and then being rejected for the loan that was going to cover a significant portion of the cost.
• Significant 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.   

Alternative Ways To Pay For Your Wedding

• Crowdfund using your friends and family: 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.
• Think outside the box: It may be hard to imagine, but there are ways you can save money without having to give up on quality. For example, rather than hiring a makeup artist, you can ask a friend or family member who is great at hair and makeup.
• 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. Your guests won’t know the difference and in general, won’t remember the specifics but the overall feeling of the day

Additional Reading

Filing Your Taxes As A Couple In Canada

Divorce In Canada: How Much Does It Cost And How Are Assets Divided?

Wedding Loan FAQs

Bottom Line

The cost of a wedding can be very high, as such,  it is recommended that you do some research and find a lender that’s right for you before you make any final decisions. Be sure to also make have a budget planned out and know how much you need to borrow. That way when you get in contact with your lender you’ll also be able to provide them with all the information they need.