The 6 Best Canadian Personal Loans
Who Offers the Best Canadian Personal Loans?
Do you need some quick cash? Unless you happen to have a family member or friend who's in a position to float you a loan, you'll probably need to look to a financial institution to get the money you require. But, not all sources of loans are equal, with some predatory forms of lending charging interest rates of well over 100%! Fortunately, there are lenders offering personal loans that can help you close the gap between what you have and what you need - without plunging you deeper into financial straits.
For Canadian consumers, there are several different options for personal loans online. Some services connect you directly with funding, while others work as a middleman and refer you to trusted financial partners to ultimately close your loan.
Thursday, February 9th
2023 Canadian Personal Loan Reviews
Borrowell
Borrowell makes it hassle-free to find a personal loan in most parts of Canada. This service connects you with well-respected lenders who offer some of the lowest rates in the industry. Though eligibility criteria through Borrowell tend to be on the stricter side, consumers with relatively good credit should have no problem getting a personal loan. Top-rated by customers and the BBB alike, Borrowell also earns our highest possible ranking.
Loan Connect
Canadians residing in all provinces can use Loan Connect to find personal loans in their area. This service matches borrowers and lenders across all credit scores and is our preferred platform to use for comparison shopping among lenders - to see which financial services have the best rates and terms. You'll usually have to take a few more steps to actually fill out the application with the lender you select, but Loan Connect is a terrific place to start.
Loans Canada
Loans Canada is a comparison platform that, in theory, allows you to get quotes from a variety of lenders to secure a personal loan. The service has a good rating from the BBB and seems to be available to residents of all Canadian provinces. But, your lender matches may not actually offer personal loans, leaving you back at square one in your research.
goPeer
You won't find another source of personal loans in Canada quite like goPeer. It's the only one in our review that is funded by everyday consumers as investors, and it's been around only since Fall 2020. Because you have to wait for investors to choose to fund your loan, you may not receive your money for a few days or even a week. Initial reports are promising and we look forward to seeing goPeer grow, but it definitely doesn't have the longevity of most personal loan providers we evaluated.
Mogo
Mogo is probably one of the most tech-savvy options among providers of personal loans for Canadians. This fintech company has a lot of free bells and whistles used by over a million members of their platform. Unfortunately, those perks are overshadowed by the biggest area of complaints by Mogo users: personal loans! Clients describe their experiences with the loan process and Mogo reps as frustrating at best. You may want to look elsewhere for your personal loan.
LendingMate
Compared with the other lenders in our review, LendingMate is difficult to recommend. All personal loans here require a guarantor to sign up with you, making it impossible to get money if you don't have a friend or family member with good credit who is willing to help. For reasons ranging from an "F" rating by the Better Business Bureau, to customers who describe the service as an outright scam, we feel there are better choices available to borrowers in Canada.
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One of the newest ways to get a personal loan is through a social lending network, also known as peer-to-peer lending: everyday people choose to invest in funding loans for their fellow Canadians, creating a win-win where they make money on the interest you pay on the loan, and you get the money you need without paying exorbitant interest rates or fees.
Whichever route you choose, it's important that you carefully consider the terms of any personal loan offers you receive. Failure to repay your loan will negatively impact your credit score and history, which can be hard to repair later on down the road. Be sure to determine the interest rate, repayment terms, and any origination fees or prepayment penalties before you sign on the dotted line. While it can be tempting to accept any cash offer you get, take the time to choose wisely and be a well-informed consumer first.
As you look at the various options for personal loans in Canada, how can you determine where to start and, ultimately, which service to use? You may find it useful to keep these factors in mind:
- Direct funding or referral service. Will the provider be funding your loan or helping you comparison shop by connecting you with several different lenders? Bear in mind that, in the latter case, you may have to take extra steps to actually complete the application and get your personal loan funded. If it's a referral service, who are their lending partners and are they reliable?
- Transparency. Does the service make it easy to see the average interest rates paid by borrowers? Can you get sample quotes by browsing the site or by entering some of your personal information? Does the lender or referrer publish their fees, if any?
- Reputation. What do consumers say about their experience with the service? Has the Better Business Bureau rated and/or accredited the company? Has the provider been in business long enough to establish its trustworthiness?
- Timeframe for receiving funds. How quickly can you expect to receive the proceeds of your personal loan once your application has been accepted? Some services can transfer the money to you in as little as an hour, while others may take a week or more. If time is of the essence, you'll want to ensure you select a lender or referral service with a quick turnaround time.
TopConsumerReviews.com has reviewed and ranked the best online sources of personal loans in Canada today. We are confident that this information will help you get the money you need quickly, with loan terms you can afford.
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