As the fourth largest province in Canada, Ontario is one of the country’s largest and most thriving commerce hubs. Because of this, it also happens to be one of the best places to obtain affordable and flexible financing. Regardless of your funding needs, personal loans offer a great way to shoulder the burden of both planned and unplanned costs, such as medical bills, holiday expenses, credit card payments and more.
Finding a personal loan with great rates is not always easy. In fact, if you’re not careful, you risk falling victim to payday loans and other subprime products; both of which can put you in an endless cycle of debt, severely damage your credit or even cause you to file for bankruptcy. To prevent adverse outcomes, it’s crucial to shop around for the best loan and rates from a reputable and trustworthy lender. We get it, though — shopping for personal loans can be a lengthy process and eat up time you may not have. We have you covered.
At LoanConnect, we partner only with Canada’s most trusted lending institutions who match our values; the biggest of which is to make borrowing easy and affordable for everyone. Our partners cater to borrowers in all credit situations, as we strive to offer financial assistance to everyone when they need it.
What Are the Requirements for Personal Loans in Ontario?
The loan requirements vary from institution to institution, which can make it difficult to prepare for a loan. However, most lenders require you to have a steady stream of income and a qualifying credit score. A qualifying credit score can range from 500 to 680, depending on the type of product you’re interested in. However, a better score will almost always get you more affordable rates and better loan terms. As such, it’s a good idea to build your credit as much as possible before applying for personal loans.
How Do I Apply for Personal Loans in Ontario?
Due to the vast and increasing number of online lenders, applying for a personal loan today is easy, and can be done without leaving the comfort of your own home. When you use an online loan search engine such as LoanConnect, you fill out a single application and we present you with all your options based on the information you provide. As part of your application results, you will see loan amount, term length, estimated APR, and monthly payment amounts to make the most informed decision. With a few questions about yourself and your finance, this process can be completed in a matter of minutes.
You may be required to answer additional questions specific to the lender you choose to move forward with. After choosing an appropriate loan offer, you may be required to answer additional questions specific to that lender. To expedite this process be prepared with at least one form of identification and proof of income, as well as the willingness to grant permission to access your credit report. Your funds will be transferred into your account after everything is confirmed with the lender and you have accepted their terms. Seeing your funds the same day is possible if you are prepared with necessary documentation and ready to move forward with a lender.
Can I Get a Personal Loan With Bad Credit?
Many issuers of personal loans cater their products to people with bad or no credit. However, note that with poor credit, the rates and terms you receive may not be as favorable. As we offer unsecured personal loans, lenders may need to increase interest to coincide with the risk of lending to the you. This removes additional risk from them and onto you.
Do You Need a Job To Get a Personal Loan?
Many people rely on personal loans to see them through periods of unemployment, however there will be fewer options available. That said, lenders will want to see that you do have the means to repay them somehow. If you are having difficulty landing a job with security, there are options to earn some fast cash between jobs. Read more here to see examples of how to help prove your means to repay a loan.
What Type of Interest Rates Should You Look for in Personal Loans in Ontario?
The interest rate you qualify for will largely depend on your credit score and ability to repay the loan. However, some lenders offer rates as low as 4.5% for borrowers with good to excellent credit. If you have bad to fair credit, or if you do not have a credit history, expect higher rates. However, know what is too high, as even loans with bad credit should not come with rates that exceed 35.99%.
Will Applying for a Personal Loan Impact Your Credit Score?
When you submit an application through LoanConnect for personal loans, your credit score will not suffer. Only once you submit an official application with the lender you choose will your credit report receive a hard inquiry. However, if you make all loan payments on time, the long-term benefits outweigh the short-term drop in your score.
What Else Should I Know About Personal Loans in Ontario?
A few other facts worth noting about personal loans in Canada are as follows:
- A lender cannot charge you more than 60% interest on a loan.
- The typical term for a personal loan in Canada is between six and 60 months.
- The average interest rate for personal loans in Ontario is between 6% and 12%.
If you need a personal loan to help you through whatever stage of life you’re in, use our loan search engine to begin shopping around today.