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If you live in Ontario and are in need of some extra money, then you might want to consider getting an installment loan. Installment loan rates in Ontario are competitive, and there are installment loan lenders able to cater to a wide range of borrowers. And thanks to the availability of online installment loans, you can get the cash you need quickly and easily, entirely online. Check out our recommendations in the table below of the most reputable installment loan lenders in Ontario, with some of the best installment loan rates. And read on to find out everything you need to know about installment loans.
There are a number of different ways to get an installment loan in Ontario. The easiest method is online; online installment loans have streamlined, easy-to-complete application processes that allow borrowers to submit a loan application in just a few moments. However, this is not your only option. Other installment loan lenders in Ontario exist, and this includes banks, credit unions, alternative lenders and private installment loan lenders. Picking the right type of installment loan lender for you is the first step in your installment loan journey.
Whichever installment loan lender you choose, you will have to complete an application form and submit some basic information, usually relating to your credit history and income. This application will then be assessed, and if approved, you will receive your loan funds directly into your chequing account.
Installment loans in Ontario are available from a variety of installment loan lenders, including:
In addition, some types of installment loans are available from your chosen:
Traditional installment loan lenders like banks and credit unions are known for offering competitive, low rates of interest, and personalized service. They often engage with you to craft a suitable installment loan agreement, leveraging the insight gained from your deposit account and credit history.
On the other hand, alternative and online installment loan lenders in Ontario offer fast access to installment loans. While they can sometimes charge higher interest rates than banks, the simplicity and speed of their online processes are attractive to those who need cash fast.
Ontario installment loans come in many forms, as an installment loan is any loan that provides you with a lump sum that must be repaid in installments over a set period of time. This definition encompasses:
Ontario installment loans can be either secured or unsecured. A secured installment loan is “secured” by putting up an asset (like a house or car) as collateral in the event you can’t repay the loan. If you default on the loan, the asset can be seized as payment. Because secured loans are considered less risky by Ontario installment loan lenders, you can often borrow a larger sum of money at a lower interest rate, or get approved even when you have a poor credit score. The best installment loan interest rates in Ontario are for secured loans.
In contrast, an unsecured installment loan requires no collateral. Because they are considered riskier to installment loan lenders, unsecured installment loans in Ontario tend to be for smaller amounts and have higher interest rates than secured loans.
There is also a distinction between use-specific and non-use-specific installment loans. Essentially this means: can the loan funds be used for any purpose, or do they have to be used for a specific reason? For example, a mortgage has to be used for property costs. There are installment loans of both types, so choose one that suits your needs.
The amount of money you can borrow with an installment loan in Ontario depends on the type of loan you apply for, the installment loan lender you use, and your personal financial situation. Some Ontario installment loans, like mortgages, can be for hundreds of thousands of dollars, but the majority of unsecured installment loans are for much less, typically $1,000 to $20,000.
What you can use your installment loan in Ontario for depends on the type of loan you get. The majority of online installment loans have no restrictions in usage, so can be used for any purpose, including:
As long as you make your loan payments on time, and are not violating the conditions of your loan, you can use the funds from your installment loan however you want.
However, there are some installment loans in Ontario that are use-specific. This includes:
These loans all have intended uses, and the installment loan lenders offering them usually have terms relating to that usage.
It’s important to note the distinction between title loans and use-specific loans. A title loan is a form of installment loan that uses the title of an asset (such as a car or house) as collateral, but the funds released are not for the purchase of that asset, and can be used in any way. This is different from an auto loan or mortgage that is taken out with the intent to use the funds to purchase a specific car or property.
To be sure you always get the right installment loan for your needs, check the installment loan lender’s conditions before you apply.
Installment loan interest rates in Ontario can vary widely, and depend on the loan type in question, the lender used, and the borrower. For the most common type of unsecured installment loans, some people may be able to access an APR of around 8%, while others may be charged an APR of 40% or more. Generally speaking, borrowers with good credit qualify for better installment loan interest rates than borrowers with poor credit. Similarly, those with higher income, less debt, assets to secure the loan against, or other circumstances that decrease the installment loan lender’s risk, are more likely to get better rates. To find the best installment loan rates in Ontario for your financial situation, speak to one of our experts.
Installment loan lenders in Ontario consider a number of factors when setting your installment loan interest rate, including:
A high credit score is the result of past financial responsibility, and will reassure lenders that you will repay your loan as agreed. A good credit will secure lower rates.
Those earning more may find it easier to make their loan repayments on time, and as such lenders are likely to feel more secure lending to them. This can result in better interest rates.
Similarly, a steady income stream is preferable to inconsistent income.
Other financial commitments may have an impact on loan repayment, and will influence how comfortable an installment loan lender in Ontario is lending to you.
Lastly, any asset that you can use as collateral will lower the installment loan lender’s risk, and hence secure a lower interest rate.
There are a couple of ways to get the best installment loan interest rates in Ontario. Here are some tips:
Installment loan lenders come in many different forms, and choosing the right one for your needs can mean the difference between financial health and financial ruin. So when comparing installment loan lenders in Ontario, you need to look at the following:
Ontario installment loans can be both very small (from just $250), and very large ($50,000 or more). Find a loan and a lender that can offer the amount you need, and never borrow more than necessary.
There are many types of installment loans; what you need the funds for will impact which types are suitable for you.
Repayment periods for installment loans can range from 3 months to 5 years, although some loans have much longer lifespans. Choose one with a term that makes sense for you.
Your monthly loan cost is a vital consideration; you must find a loan that you can afford the repayments on, not just now but over the life of the loan..
All loans come with some fees; you need to take into account how these affect the overall cost of your loan when comparing Ontario installment loan lenders.
If you need cash fast, certain installment loan lenders are better placed to help you, as some lenders may take several weeks to process a loan application. Just remember that you pay for convenience.
To qualify for an installment loan in Ontario, you must be at least 18 years old and a resident of the province. After these two regulations, which apply to all installment loans, the eligibility criteria become lender-specific. Every installment loan lender has their own set of qualification rules, which can vary widely.
The more traditional installment loan lenders, like banks and credit unions, will require borrowers to have a minimum credit score of 650 and an income of at least $1,200 a month. However, no-credit-check and bad credit installment loans are available, especially through alternative and online installment loan lenders. Similarly, installment loans with flexible income requirements are available. These loans will likely come with a higher cost than a standard installment loan, but they can provide a vital avenue for individuals with low income or less-than-stellar credit to access funds.
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
