Personal loans

 Personal loans offer flexible financing for individuals to cover various personal needs, from debt consolidation to major life events. In Canada, these loans are available through banks, credit unions, fintech lenders, and private lenders. 

• No collateral required
   
• Approval based on credit score, income, and debt levels
   
• Ideal for debt consolidation, medical expenses, or large purchases
   
• Fixed or variable interest, with terms from 1 to 7 years

• Backed by collateral (e.g. vehicle, savings, home equity)
   
• Easier to qualify for, lower interest rates
   
• Higher risk if borrower defaults, as the asset can be claimed

• Revolving loan with flexible access to funds
   
• Interest only on the amount used
   
• Can be secured (e.g. home equity line of credit – HELOC) or unsecured
   
• Ideal for ongoing or unpredictable expenses

• Combines multiple high-interest debts into one lower-rate loan
   
• Simplifies payments and may reduce total interest
   
• Can improve cash flow and credit score if managed well

• Borrow against the equity in your home
   
• Often used for renovations, investments, or major life events
   
• Typically lower interest than unsecured loans
   
• Available as lump-sum (home equity loan) or revolving credit (HELOC)

• Offered by private lenders for those with bad credit or unique needs
   
• Faster approval, less documentation
   
• Higher interest rates, often short-term