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What kind of personal loan can I get in Ottawa?
According to Statistics Canada, Ottawa residents hold a range of loan types, including lines of credit, credit cards, installment loans, vehicle loans, student loans and other types of debt. This is in addition to mortgage debt. All of these types of loans, and many other personal loans (including debt consolidation loans, bad credit loans, and payday loans) are readily available to residents throughout the city, although not every lender offers every type of loan.
How much can I borrow with a personal loan in Ottawa?
Personal loans range a lot in size, from just $300 to $35,000 (or more for secured loans). The average Ottawan holds nearly $20,000 in non-mortgage debt, though as mentioned above this consists of a mix of debt types. The exact amount you will be able to borrow depends on your income, your debts, your credit score, the type of loan you apply for, and the lender’s own rules.
The most qualified borrowers, earning Ottawa’s average household income of $102,000, and with good credit, will generally be able to borrow larger sums than those with lower-than-average income, heavy debts, or poor credit.
What credit score do I need to get a personal loan in Ottawa?
The average credit score in Ottawa is 688 – among the highest in Ontario, and higher than the national average. This means that the “average” resident will qualify for personal loans from almost everywhere, as even the strictest lenders’ credit requirements usually top out at 650.
However, many lenders have more flexible credit requirements than this, meaning that those with lower-than-average credit can still qualify for a loan. Some have credit thresholds of 600 or above, and some specifically accept borrowers with poor credit (or with a score less than 560). And some loan types do not rely on credit at all. So it helps if you know your credit score in advance of applying for any loan; you can then search for lenders and loans whose eligibility criteria you meet.
How easy is it to get a personal loan in Ottawa?
Logistically, getting a loan in Ottawa is very easy. The availability of online platforms and apps to help you search for, apply to and manage personal loans means that everyone can complete their loan journey in record time. Documents can be uploaded digitally and processes are streamlined and user-friendly. So the administrative burden of getting a personal loan is minimal.
However, how easy it is to gain loan approval can vary widely. Your financial profile, the lender you apply to, and the loan type and amount you apply for will all impact your chances of approval (and how long it takes for your loan application to be processed). Those with poor credit, low income and high debt levels will find it harder to gain loan approval than those in better positions, unless they focus their attention solely on lenders and loan types appropriate to their situation.
Here’s a tip: if you’re struggling to get a personal loan, think about offering loan security. The average property price in Ottawa is $714,302, and by using a valuable asset – such as your home – to minimize a lender’s risk, you are more likely to secure loan approval.
What kind of employment income is needed for a personal loan in Ottawa?
The unemployment rate in Ottawa is currently 5.6%, below the long-term average but still higher than in early 2025. The labour force participation rate is 65.9% – meaning over a third of Ottawa residents don’t meet the standard of ‘regular employment income’ that some personal loan lenders hold.
However, there’s still hope. Many lenders don’t require ’employment income’, just some form of provable regular income. This could be pension income, benefit income, investment income. As long as you have enough money coming in to afford your debt repayments, many lenders will still accept you. Just be sure to check a lender’s income conditions before applying.
What happens if I don’t make my Ottawa personal loan repayments?
The average consumer in Ottawa holds $19,634 in non-mortgage debt – one of the lowest levels in the country. However, delinquency rates are up by nearly 25%, to 1.47% as of 2024, showing that the number of those struggling financially is increasing. And failing to make your debt repayments can be very serious; at the very least it will negatively impact your credit score, but it may also trigger debt collection or legal action, and if you have a secured loan, your collateral may be at risk.
There is help available though. Check out the many debt relief solutions available to Ottawans, before you risk loan default.
Written by:
Amy Orr
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.
Reviewed by:
Jenna West
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.
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