Canada
Personal Loans in Canada: How to Compare Rates and Total Cost in 2026
Under the 35% criminal rate cap, the spread between prime-linked and instalment lenders is enormous.
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- Prime-linked rates
- Prime + 1% to 7%
- Instalment lender rates
- 29.99%-34.99%
- Typical amounts
- $1,000-$50,000
- Legal ceiling
- 35% APR
Two very different markets
Bank and credit-union loans price near prime. Online instalment lenders sit just under the 35% cap. The same $10,000 can cost 9% or 34% depending on where you look.
Check credit-union membership first
Many credit unions price personal loans several points below bank cards. Membership is usually a small deposit and a local connection.
Fees are disclosed separately
Administration fees and broker fees are not in the rate. Ask for the total cost of borrowing, which lenders must disclose.
Watch the term against the cap
A 34.99% loan over five years nearly doubles the principal. If you need five years, the rate is the problem and a line of credit may suit better.
FAQ
What is the legal maximum rate?▾
35% APR under the Criminal Code.
Can I get a loan without a credit check?▾
Rarely - most check, some with alternative data.
Is a line of credit cheaper?▾
Usually, if you qualify.
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