Furniture Financing In Canada

Furniture Financing In Canada

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated August 16, 2022

Whether you are moving into a new home or simply want to update your décor, you may need to do some furniture shopping. However, furniture shopping can often be much more expensive than you had planned. Thankfully, there are several options to help you finance your next large furniture purchase in Canada.

Where Can You Finance Your Furniture In Canada

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Loans Canada

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

Loanz

Amount
$1,000 - $15,000
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29.9% - 46.9% APR
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12 - 60 months

Symple Loans

Amount
$5,000 - $50,000
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6.99% - 22.99%
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Up to 84 Months

Spring Financial

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

goPeer

Amount
$1,000 - $25,000
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7.5% - 31.5%
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36 - 60 months

Cash Money

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$1,500 – $10,000
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Varies by province
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Varies by product (up to 60 months)

Lendful

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

Loan Away

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

LoanMeNow

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

Consumer Capital Canada

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

Mogo Finance

Amount
$300 – $35,000
Rate
9.9% - 47.72%
Term
3 - 60 Months

Fairstone Financial

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

Types Of Furniture Loan Options

Furniture can be pretty pricey, and you may not have the cash available to buy what you need for your home. Luckily, there are several financing options available to help you furnish your home without having to wait months (or years) to save up for a lump-sum purchase.

Finance Your Furniture Through A Personal Loan 

A personal loan is a great option if you don’t want to use the furniture’s in-store financing program. You can apply for a personal loan from your bank, credit union, or alternative online lender and receive a lump sum of money to use to pay for your furniture. Then, you’ll be required to repay the loan in installment payments over a set period of time, along with interest.

This can be a great option as you may have more repayment options, so you can choose a suitable loan term to make your payments affordable for you. Moreover, if you apply with an alternative lender, you may qualify for a personal loan even if you have bad credit or no credit. 

Things To Consider Before Using a Personal Loan For Furniture Financing 

  • High-interest rates if you have bad credit
  • Early repayment fees may be charged if you pay your loan off early 

Finance Your Furniture Through Your Furniture Store

The furniture store that you buy your items from may offer in-store financing. This type of financing works when a furniture store teams up with a lender to finance your loan. You may qualify for a low-interest rate or even zero interest for a certain amount of time, usually between 6 to 24 months, based on an approved amount and your credit profile.

Things To Consider Before Using a Furniture Store For Furniture Financing

  • Minimum purchase amount may apply
  • Administration fees may be added to your loan cost
TheBrick FinancingTheBrick offers up to $20,000 in financing with no interest. Terms range from up to 18 or 36 months. 
Ikea FinancingIkea Canada does not offer any in-store financing
Leon’s FinancingLeon’s offers 0% interest financing through Leon’s FlexitiCard. Get equal payment plans with 12, 18 or 24-month terms. They also offer 6 or 12-month terms with no payment. 
Urban Barn FinancingUrban Barn offers financing through PayBright for purchases between $500 to $15,000. You can choose between 6, 12, 18, 36, 48 and 60-month terms (depending on the purchase amount). 
Wayfair FinancingWayfair offers financing through PayBright. Payments between $50 – $300 can be paid in 4 equal installments while purchases over 300 can be paid in 12 or 24 installments. 

Finance Your Furniture Through A Credit Card

If you have a credit card, you can make a furniture purchase on credit, as long as your expenditure is within your credit limits. You can avoid paying interest if you repay the full amount by the next payment due date. Financing your furniture with your credit card will also allow you to earn rewards, which you can later use to make new purchases or pay off all or part of your credit card bill. 

Things To Consider Before Using a Credit Card For Furniture Financing

  • If you carry a balance, the interest rate can be very high
  • Spending over 30% of your credit limit could negatively impact your credit score

Finance Your Furniture Through A HELOC

If you own a home and have some equity in it, you may be able to qualify for a home equity line of credit (HELOC). With this financing option, you’re borrowing against the equity on your home

Since your home acts as collateral for the loan, you may qualify for a low-interest rate. Moreover, like a credit card, your HELOC gives you a credit limit within which you can borrow as much or as little as you need. You can also continue to borrow against your HELOC without having to re-apply for a loan. 

Things To Consider Before Using a HELOC For Furniture Financing

  • If you don’t have enough equity, you may not qualify for a HELOC
  • If you default on the HELOC, you risk losing your home

Finance Your Furniture Through A Rent-To-Own Store

Some furniture stores let you rent furniture and return it whenever you want with no additional fees. They’re a great option if you only need furniture for a limited time, moreover, no credit checks are required.

Things To Consider Before Using a Rent-To-Own Store For Furniture Financing

  • You may pay more than the furniture’s value if you rent long-term 
  • Some stores may charge a balloon payment if you choose to buy the item when the rental period expires

Types Of Lenders You Can Get A Furniture Loan

As mentioned, there are numerous sources you can use to finance your furniture purchases in Canada. From traditional institutions to more alternative lenders, there’s no shortage of furniture financing options.

Banks – Banks can often give some of the best interest rates on the market. However, the problem with getting financing from the bank is that they often require you to have good credit, and if you don’t, securing financing through the bank could prove difficult.

Private Lenders – There are many private lenders in Canada that are willing to work with borrowers with varying credit profiles. While these lenders are easy to get approved for, they often charge high interest rates. 

In-Store – Many of the largest furniture retailers in Canada offer some type of financing when you purchase furniture from them. In fact, most stores will have a variety of different types of financing available. Some options may include a grace period or no interest. 

Types Of LendersDefinitionApproximate  Interest RatesLender Examples
BanksMajor financial institutions like Canada’s Big Five banks offer personal loans. They generally offer the best rates but have strict requirements. 0.5% - 15%- TD
- BMO
- RBC
- CIBC
- Scotiabank 
- Laurentian Bank of Canada
Credit UnionsCredit unions are non-profit organizations that are owned by their members. They offer smaller loans than banks but rates are still affordable. Requirements are also more flexible than banks, but you must be a member (of the credit union) to get a loan. 3% or more - Fusion Credit Union
- First West Credit Union
- PACE Credit Union
- DUCA Credit Union
- Meridian Credit Union
- Vancity Credit Union
- Ganaraska Financial Credit Union
Private LendersPrivate lenders are easier to qualify for than banks due to their flexible lending standards. Even those with poor credit may qualify, however, they often charge much higher rates than banks, making them a more expensive option. 8% - 46%- Loanz
- Spring Financial
- LendDirect
- LoanMeNow 
- Consumer Capital Canada
- Mogo

Cost Of A Furniture Loan

Personal LoanCredit CardHELOCIn-Store
Loan Amount$6,000$6,000$6,000$6,000
Interest15%19.99%5%0%
Loan Term3 Years3 years and 6 months3 years2 Years
Monthly Payment$207.99$200$180$250
Total Paid$7,487.64$8,385.11$6,480$6,000
Total Interest$1,487.64$2,385.11$480$0

How To Save On Furniture Costs

Follow these tips to keep more money in your pocket when buying furniture:

  • Buy directly from the manufacturer, which may charge less than retail stores
  • Buy at month-end when stores are looking to liquidate older models to make room for new ones
  • Buy at the start of the year, which is when new showroom styles typically come out
  • Shop at warehouses, where manufacturers store their overstocked items and floor samples
  • Shop for used furniture
  • Sign up for sales notifications

Things To Consider When Purchasing Furniture

  • Go for quality, not quantity – If you plan on staying in the same place for a while, it may be better to purchase furniture that will stand the test of time. Moreover, if you are tight on money or require financing, it makes more sense to only buy a few pieces at a time than to buy everything you need at once. This will make payments much more manageable.
  • Check the measurements – Not all couches and other pieces of furniture are created equal. Whereas one piece might fit perfectly where you need it, there is another that will be much too big. Instead of rolling the dice, be sure to measure the furniture and measure the space you have for it as well. If you skip this step, you run the risk of financing a piece of furniture you can’t even use.
  • Buy second-hand furniture – While buying new has its advantages, buying furniture second-hand can help you save a lot of money. Estate sales are probably the best way to get used quality furniture, they often have older (yet quality) furniture at a very affordable price. 
  • Keep to your budget – When you are looking at financing for furniture purchases, remember to stay within your budget. You need to look at your finances and consider just how much you can afford in terms of payments and base how much you borrow on that. 

Furniture Loans In Canada FAQs

Can I get a furniture loan if I have bad credit? 

If you have bad credit and are looking for the best way to finance the purchase of new furniture, online alternative lenders are a good place to start. These lenders typically have less stringent eligibility criteria and some even specialize in working with bad credit borrowers

Can I use part of my mortgage to buy new furniture?

A mortgage loan is meant specifically for the purchase of a house and the money is transferred directly to the seller. Therefore is it not possible to use part of your mortgage to furnish your new house. 

What does it mean to rent-to-own furniture?

This basically means you will lease the piece of furniture for a monthly or weekly payment, with an option to outright purchase the furniture at some point in the agreement. This option is great for those consumers who can’t afford to purchase a piece of furniture outright.

Bottom Line

Financing furniture in Canada is a viable option for most consumers. With the variety of different financing options out there, purchasing the furniture you need is possible.


Rating of 5/5 based on 3 votes.

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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