Long Term Loans Canada: Best Lenders & How to Get
Are you looking for a long term loan in Canada? You are not alone. Many Canadians are in the same boat, trying to find the best lender and the best terms for their money needs. Long term personal loans can help you to meet your financial goals, but it’s important to understand the process and the various lenders available.
In this article, we will discuss the best lenders for long term loans in Canada, as well as how to get one and the advantages and disadvantages of doing so. We will also answer some commonly asked questions, so you can make an informed decision and find the best lender for your situation.
Best Long Term Loans in Canada
Much different from payday loans, when it comes to long term personal loan borrowing in Canada, there is an abundance of options available. The key here is to choose the best one for you that can meet your needs.
Whether you need an installment loan, home equity, auto loans, student, or personal loan, we have selected the following lenders to ensure that you are getting the best deal.
SkyCap is an online financial services company that helps those with bad credit manage their finances in a secure and efficient way. They provide a variety of services, including installment loans, personal loans, credit counselling, debt consolidation, and financial planning.
Their services have a solid reputation for offering reasonable interest rates that depend on credit checks – the higher your score, the more favourable the APR. But rates typically fall between 19.99% and 39.99%. And with flexible repayment terms ranging from nine months to five years and a maximum amount of $500 to $10,000, it’s difficult to ignore their potential.
Borrowers will need to have a $1,666 minimum monthly income, and bankruptcy is not accepted, so this lender won’t be perfect for everyone.
Spring provides personal loan products to Canadians with less than stellar credit. They offer competitive interest rates and a variety of personal loan options, such as installment loans, to meet the needs of people who have struggled with their credit rating in the past.
Their long term personal loans range from $500 to $35,000 and can be used for various purposes, such as consolidating debt, financing a major purchase, or getting some extra cash. The application process is simple and straightforward and can be done over the phone or online. So, there’s less fuss to worry about there.
If you have references available, then Spring will be your best bet. Especially if their higher payouts appeal to you. There are no hidden fees, soft credit checks, no origination fee, and terms are available for nine months to five years. Funding is instant, but their rates are quite high- 17.99% to 46.96%. But still, not as high as payday loans.
Loanz is a leading financial services provider in Canada (excluding Quebec) that offers installment loans, car loans, and personal loan amounts of $1,000 and $15,000. Their products can be customized, which makes them a great option for those who have struggled with large loans in the past.
They provide secured and unsecured options, with repayment terms that range from one to five years. Loanz is probably best avoided by borrowers who aren’t financially stable or have a precarious employment situation. This is because their minimum term is quite lengthy.
What’s great about Loanz is that they’re willing to accept applications from low credit borrowers, but the reason for this is that their APR is between 29.90% and 46.90%, which is quite high.
GoPeer offers hassle-free loan services to borrowers with good to excellent credit through its secure online peer-to-peer lending platform. Borrowers can access a personal loan and an installment loan between $1000 and $25,000, with terms ranging from two to five years. This makes them an excellent option for long term personal loans.
What makes GoPeer unique compared to others on the market is that they offer very favourable rates (as low as 7.8%) to borrowers with a high score following a credit check. For those with average credit, the most you’ll be charged is 25%.
To ensure maximum safety for borrowers, GoPeer offers an extensive credit and identity verification process. So this makes them strict lenders. But ultimately helps them to ensure that the borrowers are reliable, trustworthy and that everyone is getting a fair deal. Additionally, this lender offers a grace period of fifteen days if you miss any payments.
More than 1.5 million Canadians have received loans from Mogo, a revolutionary online lending platform. With pre-approval in under three minutes, they offer installment loans, and other loan options, for loan amounts ranging from $500 to $35,000.
As well as repayment terms from six months to five years. Their application process is simple and straightforward, and the approval rates are higher than most traditional lenders. Plus, they perform a soft credit check, which means your report won’t take a hit.
All you need to do is provide a few basic details like income and employment status, and you can get approved for your personal loan in just minutes. The only downside is they don’t offer their services to all provinces. For example, Nova Scotia, Manitoba, British Columbia, and Ontario. Moreover, their rates are quite high- 9.90% to 46.96%.
Loans Canada is a new kind of lender that aims to provide more accessible, flexible and personalized financing options to Canadians. With standard rates and flexible repayment plans (three-five years), this online lender has given installment loans, secured loans and unsecured loan options to over one million consumers.
As a broker, they have access to a network of lenders who offer between $500 to $50,000 that can be tailored to the borrower’s personal loan needs.
While there are many reasons to borrow from Loans Canada, those with bad credit should probably avoid them due to their high interest rates (46.96%). Because while they can get as low as 2%, only the best creditworthy borrowers will be able to get it. So avoid them completely if you want to build credit.
LoanMeNow is one of the leading providers of short term personal loan options in Canada. Unlike the other lenders on this list, borrowers with poor credit can repay their debt in as little as three months. Plus, you can choose between monthly and weekly payments.
Furthermore, you can even get an installment loan with no hidden fees or other fees. They offer competitive rates (28%-32%), and their customer service is second to none. Their consistency and reputation make them a viable option for those who need access to same day (business day) payouts or need to cover an emergency.
Those with bad credit and looking for financing between $500 and $1000 should consider LoanMeNow. Particularly if they earn a monthly income of $1,200 or more, as the lender won’t accept anything less.
When it comes to an installment loan, secured loan and an unsecured long term personal loan, Fairstone is your go-to. They’ve been in business for over 100 years, and with a loan amount starting from $500 and going as high as $50,000, they’re the largest lender on this list.
But also the most financially flexible. Here is a breakdown of each of their loan types:
Secured: $5,000 to $50,000, three to ten-year term, 19.99% – 23.99% APR, collateral required. Unsecured: $500 to $25,000, six months to a five-year term, 26.99% to 39.99% APR.
They also have installment loans, which makes Fairstone’s products highly effective when managing your finances. Essentially, they have many financing options that can fit your unique financial situation, whether you are looking to consolidate debt, purchase a vehicle, or even take a vacation.
Summing Up Best Long Term Personal Loans
Here, you will find an overview of the lenders we have reviewed. This information will help you know what you’re getting into before signing an agreement.
|Lender||Interest Rate||Loan Amount||Repayment Terms||Credit Score|
|SkyCap||19.99%-39.99%||$500-$10,000||9 months-5 years||660|
|Spring||17.99%-46.96%||$500-$35,000||9 months-5 years||500|
|Mogo||9.90%-46.96%||$500-$35,000||6 months-5 years||500|
|Loans Canada||2%-46.96%||$500-$50,000||3-5 years||660|
|Fairstone||19.99%-39.99%||$500-$50,000||6 months-10 years||660|
Types Of Long Term Loans In Canada
Canadian long term personal loan options come in various forms, each with their own unique advantages and disadvantages. This includes secured loans, unsecured loans, and an installment loan if you require one. Each of these types of financing is described below.
Secured Long Term Loans
Unlike payday lenders, long term personal loans are secured against an asset of the borrower. This collateral is used to protect the lender in the event of the borrower defaulting on the loan. In terms of repayments, it is generally repaid in monthly payments over a predetermined period of time, usually a few years.
The interest rate on a secured loan will typically have lower monthly payments than that of an unsecured term, as the lender is taking on less risk by having a form of collateral to recoup their losses.
Unsecured Long Term Loans
An unsecured long term personal loan is not backed by collateral. Much like how an installment loan or payday loan works, they are typically used to finance smaller purchases. Instead of putting up collateral, the borrower typically has to show proof of income and a good credit history to be approved.
Unsecured long term personal loan borrowing can be risky, as the borrower is taking on more of the responsibility, but it can also be beneficial for those who want to build credit or need to borrow large sums of money and don’t have the collateral to back it up.
Long Term Loans vs Short Term Loans
A long term loan and a short term loan have a lot of similarities, but also some important differences. Both types involve borrowing money for a specific length of time, with interest accruing over the term of the personal loan.
However, the main difference between the two is the length of the repayments. Long term personal loans work through a monthly payment period of at least five years, while short term loans are usually for a period of one year or less.
Another difference between a long term loan and a short term loan is the amount of interest they accrue:
- A long term loan tends to have lower monthly payments, and interest rates since the money is being borrowed for a longer period of time.
- A short term loan on the other hand, have higher interest rates because the money is being borrowed for a less amount of time.
The purpose of the credit is also a factor when considering each option:
- A long term loan is often used for investments or large purchases, such as buying a home or starting a business.
- A short term loan is often used for expenses such as medical bills or car repairs.
The repayment process is also different for a long term personal loan and a short term loan:
- Long term are typically repaid in monthly payments, or quarterly installments over the length of the loan.
- Short term are usually repaid in one lump sum.
Advantages and Disadvantages of Long Term Loans
A long term loan is an excellent financial solution for those who are looking to borrow large sums of money. They offer a number of advantages that make them an attractive option for those who may not have the ability to pay back their debt in a shorter period of time. Here is a list of some of the main advantages of long term loans.
- The repayment term is usually much longer than other options, giving borrowers more time to pay back the debt. This can be especially beneficial to people who have a tighter budget and need more time to manage their finances.
- Their interest rates are often lower than those offered by other financing types. This can help to reduce the overall cost.
- As long as it is paid off on time, it can help to demonstrate a responsible financial history to the credit bureaus and increase a person’s creditworthiness.
Borrowing for a long period of time can come with a list of disadvantages, which must be carefully considered when making a decision.
- They are typically more expensive than short term loans. This is due to the fact that you are borrowing money for a longer period of time, which means the lender can charge a higher rate of interest.
- Repayment schedules can be rigid, meaning that if you miss a payment, you may be charged prepayment penalties and reported to the credit bureaus.
- If you want to pay the loan early, you may be subject to an early repayment fee or other prepayment penalties.
Where to Get Long Term Loans
If you’re sold on long term loans, you’ve come to the right place. There are many alternative lenders, such as banks, credit unions, and online lenders with long term loan quotes. Banks offer traditional loan products, while credit unions will offer more flexible loan terms and rates.
Online lenders may offer the most competitive rates, but they may also require more stringent credit requirements. Whichever option you choose, make sure to shop around and compare lenders to find the best deal using the following information.
Getting Long Term Loans From Banks
Getting a long term loan, as well as an instalment loan from a bank, can be a great way to finance important purchases. Using them allows you to purchase items such as a car or a home without having to come up with the full amount at once. They can also be spread out over a longer period of time, so the payments are more manageable.
Additionally, the interest rates are usually lower than short term loans. On the other hand, there are some disadvantages to getting one from a bank. The most obvious reason is that it can take quite a while to get approved, which can be inconvenient if you need the funds right away.
Additionally, the bank will likely require a good credit score and a consistent income. Finally, if you fail to make the repayments, it can damage your credit score and may even lead to legal action.
Getting Long Term Loans From Credit Unions
Getting a long term loan from a credit union can certainly be advantageous in many ways. Credit unions often offer lower monthly payments than banks, making it easier to pay off the debt over time. Additionally, they are typically more flexible when it comes to monthly payment terms and can offer more personalized service than large banks.
Credit unions also tend to be more understanding when it comes to financial difficulties, so if you experience a hardship that affects your ability to make payments, you may be able to negotiate a more favourable repayment plan.
However, getting financing from a credit union also has some potential drawbacks. This is because they are often much smaller than banks, meaning they may not have the same access to funds and may not be able to provide the same loan amounts as a bank.
Additionally, they have more stringent membership requirements and usually don’t allow non-members to apply.
Getting Long Term Loans Online
Getting a long term loan online has its advantages and disadvantages. The primary advantage of doing so is that it is often faster and easier than applying in person. You can fill out the loan application and submit it quickly with minimal hassle. Furthermore, you can often get a better rate due to the competitive nature of the online market.
However, the disadvantage is that you may not be able to fully verify the identity of the lender, which can make it difficult to trust them. This could also mean that you end up paying more in fees and interest than you would with an in-person lender.
In this case, it’s important to research the lender thoroughly before filling out an online form for a long term loan.
How to Get Long Term Loans In Canada
Getting a long term loan in Canada is easier than you might think. With the right steps, you can secure something that meets your financial situation and fits your budget. Here’s a step-by-step guide to help you get started.
- First, you’ll need to decide on the type of loan you’re looking for. Do you need to secure one with collateral, or prefer an unsecured loan? Knowing the difference between the two can help you make an informed decision.
- As a next step, you’ll have to shop around to pick the best rates and terms. Research different lenders and compare their interest rates, repayment plans, and fees. Don’t be afraid to negotiate for better terms if you think you can get a better deal elsewhere.
- Once you’ve found the best option, it’s time to start the application process. You’ll have to provide basic information about yourself, namely your address, income, and employment history. You may also need to supply additional documentation, such as pay stubs and tax returns.
Can I Get A Long Term Loan In Canada With Bad Credit?
If you have bad credit, getting a long term loan in Canada can be a challenge. The truth is many lenders consider bad credit to be a risk and may be unwilling to provide you with the funding you need.
However, all hope is not lost. There are several options you can explore if you are looking for a long term loan in Canada with bad credit. The first thing you should do is research different lenders and compare the terms and conditions they offer. You may find that some lenders are willing to work with you, even if you have bad credit.
Additionally, you may want to look into non-traditional lenders, such as private lenders, family members, or even a credit union. It is also important to remember that having bad credit does not necessarily mean that you won’t be able to get one. You can still get approved, although you may have to pay higher interest rates and fees or put up collateral.
Ultimately, if you need to get a long term loan in Canada with bad credit, there are options available. It may take some time and effort to find the right lender, but it can be done.
Eligibility Requirements For Long Term Loans
When it comes to lenders, there are certain eligibility requirements that must be met in order to be approved. Generally, they will look at your credit score, income, employment history and other financial documents to determine if the loan has affordable payments for you.
They may also ask you to provide proof of income, such as pay stubs, bank statements, and tax documents.
Additionally, some lenders will require a minimum down payment and may require collateral to secure the loan. Consider the following as some of the most important aspects of eligibility.
Generally speaking, most lenders will require a steady source of income, a good credit score, and some form of collateral. You’ll also need to provide documents that prove your identity, your residence, and your income.
Additionally, you will need to fill out an application form, provide bank statements, and provide proof of repayment capacity. Income is a key factor when it comes to a long term loan. Lenders want to ensure that you have the ability to pay back the money on time. This means that you need to provide proof of employment and some kind of income statement.
Your credit score will also be taken into consideration, as this will tell the lender how reliable you are when it comes to repayment.
Before you can get your loan approved, you need to make sure you have the right documents. These documents will include your:
- Credit report
- Bank account information
- Income tax returns
- Proof of employment
- Any other documents that may be required by the lender
What to Consider Before Applying For a Long Term Loan
A long term loan can be a great way to finance large projects or purchases, but they also come with a lot of strings attached. Before applying, you should consider a few things.
- First, you need to know your credit score and make sure it’s high enough to qualify.
- Calculate the total cost of the loan, including the interest rate, fees, and repayment terms.
- Research the lender and ensure you comprehend the terms and conditions of each. For example, are there any fees if you want to repay the loan early or if they lend to those with bad credit.
- Lastly, be sure to understand the consequences of defaulting and the potential risks associated with taking on too much debt.
There are multiple lenders available in Canada for financing large purchases or investments. Most personal loans, as well as installment loans online, are available from banks, credit unions, and peer-to-peer lenders.
The best financial institution will depend on your needs and creditworthiness, so it is important to shop around because there are many alternative lenders. Generally, you should always aim to get the most reasonable interest rates and a realistic repayment term.
How much can I get with long term loans in Canada?
Borrowers looking for lengthy financing options can get as much as $50,000.
Are long term loans legal in Canada?
Long term loans are legal in Canada but with certain restrictions. Banks, licensed lenders, and other financial institutions are allowed to offer personal loans so long as they comply with the Canadian Criminal Code.
What should I consider when applying for long term loans?
Consider how much money you need and if you can afford the monthly payments. Compare different lenders to find the best interest rate and term, as well as ensure your credit score is healthy.
Are long term loans hard to repay?
As long as you stay on top of your payment schedule and choose a realistic term, repaying what you owe will not be difficult to do.