Compare interest rates on personal loans in Canada and find the best one for you in 2023. Get the right loan with the right terms for you
Personal loans have become a popular way to meet urgent financial needs in Canada. They offer an unsecured way of borrowing money, meaning you don’t need collateral to secure the loan. However, when looking for the best personal loans in Canada, it’s important to consider the interest rates being charged. In this article, we will provide you with a comprehensive comparison of the interest rates charged by various lenders in Canada in 2023.
Why Interest Rates Matter When Choosing a Personal Loan
Interest rates are the fees charged by lenders for borrowing money. They are an important factor to consider when choosing a personal loan because they determine the cost of borrowing. Generally, the lower the interest rate, the less you will pay back in total. It’s important to note that the interest rate you qualify for will depend on several factors, including your credit score, income, and debt-to-income ratio.
When comparing interest rates, it’s also important to consider the Annual Percentage Rate (APR). The APR includes the interest rate as well as any fees charged by the lender, such as origination fees, application fees, or prepayment penalties. The APR gives you a more accurate picture of the total cost of the loan.
Comparison of Interest Rates for Personal Loans in Canada
- Tangerine
Tangerine offers personal loans with interest rates ranging from 5.95% to 19.95%. The APR ranges from 6.95% to 24.99%. The loan term can be between 6 months to 5 years. Tangerine’s personal loans have no fees, and you can pay back the loan early without any penalties.
- BMO
BMO offers personal loans with interest rates ranging from 5.45% to 15.99%. The APR ranges from 6.49% to 18.95%. The loan term can be between 1 to 5 years. BMO charges an origination fee of 1%, and there are no penalties for paying back the loan early.
- TD Bank
TD Bank offers personal loans with interest rates ranging from 6.99% to 20.99%. The APR ranges from 6.99% to 22.99%. The loan term can be between 1 to 5 years. TD Bank charges an origination fee of up to 1%, and there are no penalties for paying back the loan early.
- CIBC
CIBC offers personal loans with interest rates ranging from 5.49% to 17.49%. The APR ranges from 6.32% to 18.99%. The loan term can be between 1 to 5 years. CIBC charges an origination fee of up to 1.5%, and there are no penalties for paying back the loan early.
- RBC
RBC offers personal loans with interest rates ranging from 5.34% to 14.99%. The APR ranges from 5.34% to 17.29%. The loan term can be between 1 to 5 years. RBC charges an origination fee of up to 1%, and there are no penalties for paying back the loan early.
- TD Bank
TD Bank is a well-established bank in Canada, and they offer personal loans with competitive interest rates. Their loans come with flexible repayment terms and the option to defer payments for up to 90 days. The interest rate for a TD Bank personal loan is typically between 6.99% and 10.99%, depending on your credit score and other factors.
- RBC Royal Bank
RBC Royal Bank is another popular option for personal loans in Canada. They offer loans with fixed or variable interest rates and the option to defer payments for up to six months. Their interest rates range from 5.70% to 15.50%, depending on your credit score and other factors.
- CIBC
CIBC is a Canadian bank that offers personal loans with competitive interest rates. They offer loans with fixed or variable interest rates, and the option to defer payments for up to two months. Their interest rates range from 7.99% to 20.99%, depending on your credit score and other factors.
- BMO Bank of Montreal
BMO Bank of Montreal is another popular option for personal loans in Canada. They offer loans with competitive interest rates and the option to defer payments for up to six months. Their interest rates range from 5.45% to 19.99%, depending on your credit score and other factors.
- Scotiabank
Scotiabank is a Canadian bank that offers personal loans with competitive interest rates. They offer loans with fixed or variable interest rates and the option to defer payments for up to three months. Their interest rates range from 6.99% to 17.99%, depending on your credit score and other factors.
Comparison Chart of Interest Rates in Canadian Banks
In Canada, there are numerous banks and financial institutions that offer various financial services, including savings and investment accounts, loans, and credit cards. One of the primary factors that people consider when choosing a bank is the interest rates that they offer. In this comparison chart, we will analyze the interest rates, advantages, disadvantages, and additional services offered by the top Canadian banks.
| Bank Name | Savings Account Interest Rate | GICs Interest Rate | Advantages | Disadvantages | Additional Services |
|---|---|---|---|---|---|
| TD Canada Trust | 0.05% – 0.10% | 0.35% – 1.50% | High-interest rates on long-term GICs | Low-interest rates on savings accounts | Online banking, mobile banking, investment services |
| RBC Royal Bank | 0.05% – 0.10% | 0.25% – 1.60% | Large network of branches and ATMs | Low-interest rates on savings accounts | Online banking, mobile banking, investment services |
| Scotiabank | 0.05% – 0.10% | 0.35% – 1.50% | High-interest rates on long-term GICs | Low-interest rates on savings accounts | Online banking, mobile banking, investment services |
| BMO Bank of Montreal | 0.05% – 0.10% | 0.25% – 1.60% | Good customer service | Low-interest rates on savings accounts | Online banking, mobile banking, investment services |
| CIBC | 0.05% – 0.10% | 0.25% – 1.70% | Wide range of financial products and services | Low-interest rates on savings accounts | Online banking, mobile banking, investment services |
Conclusion
When looking for the best personal loans in Canada, interest rates are a critical factor to consider. Each lender offers different interest rates based on their own internal criteria, so it’s important to shop around and compare rates from multiple lenders.
Based on our research, Tangerine offers the most competitive interest rates for personal loans in Canada, with rates ranging from 5.95% to 19.95%. The APR ranges from 6.95% to 24.99%. Tangerine also has no fees and allows you to pay back the loan early without penalties