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    HomeAnswersCan I pay off a personal loan early in Canada?
    Loans

    Can I pay off a personal loan early in Canada?

    Quick answer

    Can I pay off a personal loan early in Canada?

    Usually 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.

    Federal cost-of-borrowing rules require lenders to disclose prepayment rights and charges before you sign. Paying early reduces total interest because interest is charged on the remaining balance.

    Before prepaying, compare: if your loan is at 9% and you carry a credit card at 21%, pay the card first.

    Related Questions

    Can I pay off a personal loan early in Canada?

    Usually 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.

    Keep reading

    • How does a co-signer affect a loan in Canada?
    • What credit score do I need for a personal loan in Canada?
    • How much mortgage can I afford in Canada?
    • Is a fixed or variable mortgage better in Canada right now?

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