Direct answers to the most-searched questions, sourced from primary Canadian regulators and updated regularly.
The interest rate is charged on your balance; APR adds mandatory fees, so it is the number to compare offers with. Canadian lenders must disclose APR under the Cost of Borrowing regulations.
Read answerOnline lenders commonly fund within 24 to 48 hours of approval; banks and credit unions usually take two to five business days. Same-day funding exists but carries the highest APRs.
Read answerMost Canadian banks and credit unions look for a score of 660 or higher for an unsecured personal loan at competitive rates. Alternative and subprime lenders will approve scores from roughly 560, but at much higher APRs.
Read answerYes, but expect APRs from roughly 19% to 46.9% — the federal criminal interest rate cap. Secured loans, a co-signer, or a credit-builder product are usually cheaper routes.
Read answerLate payments and collections generally fall off six years after the last activity, consumer proposals three years after completion, and a first bankruptcy six to seven years after discharge.
Read answerUnsecured personal lines of credit are usually priced at prime plus 2%–6%, depending on your credit. Interest is charged only on what you use, and minimum payments are often interest-only.
Read answerInterest is charged daily on your average daily balance at your annual rate divided by 365. If you pay the full statement balance by the due date, you pay no interest on purchases thanks to the 21-day grace period.
Read answerIt saves money only when the new APR is lower than the weighted average of what you carry now and you stop adding to the old balances. Otherwise it just moves the debt.
Read answerA consumer proposal is a legally binding deal, filed through a Licensed Insolvency Trustee, to repay a portion of unsecured debts (often 25%–50%) over up to five years. It stops collection calls and interest.
Read answerUsually yes. Most Canadian bank and online personal loans allow early repayment with no penalty, but some lenders charge a prepayment fee — check your loan agreement's prepayment clause.
Read answerA co-signer is equally responsible for the debt. Their stronger credit or income can get you approved or lower your rate, but every missed payment also damages their credit.
Read answerLenders cap housing costs at about 39% of gross income (GDS) and all debt payments at about 44% (TDS), and qualify you at the stress-test rate — the greater of your contract rate plus 2% or 5.25%.
Read answerFixed rates buy payment certainty for the term; variable rates move with the lender's prime rate and win only if the Bank of Canada cuts more than the market already expects.
Read answerStart 120 days out, get a written quote from a competing lender, then ask your bank's retention desk to beat it. Renewals negotiated this way commonly land 0.3%–0.6% below the mailed offer.
Read answerBudget 1.5% to 4% of the purchase price. The largest single item in most provinces is land transfer tax, and Toronto buyers pay it twice — provincially and municipally.
Read answerVariable-rate mortgages normally cost three months' interest. Fixed-rate mortgages use the interest rate differential, which at a Big 5 bank can run into five figures.
Read answerFederally regulated lenders must qualify you at the greater of your contract rate plus 2% or 5.25%. It no longer applies to insured borrowers doing a straight switch at renewal.
Read answerA single missed payment usually brings an NSF fee and a late notice. Once a payment is 30+ days late it can be reported to the credit bureaus, and repeated missed payments can lead to default proceedings.
Read answerThe First Home Savings Account lets first-time buyers save up to $8,000 a year ($40,000 lifetime) for a home. Contributions are tax-deductible like an RRSP and withdrawals for a qualifying home are tax-free like a TFSA.
Read answerCMHC premiums range from 2.80% to 4.00% of the mortgage amount, depending on your down payment. It's required when you put down less than 20% and is usually added to the mortgage.
Read answerThe RRSP deadline is 60 days after December 31 — usually March 1 (or the next business day). Contributions made by then can be deducted on the previous year's tax return.
Read answerMost Canadians must file and pay by April 30. Self-employed people (and their spouses) have until June 15 to file, but any balance owing is still due April 30.
Read answerIf you carry credit card or other high-interest debt, paying it down with your refund is usually the best guaranteed return available — often 20% or more.
Read answerStart 120–180 days early: check your credit, get competing quotes, and ask your lender for its renewal offer. Many lenders let you lock a rate up to 120 days in advance.
Read answerSet a total holiday budget in October, divide it by the weeks left, and save that amount weekly. Pay with debit or a card you clear in full, so January doesn't start with a balance.
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