Unexpected expenses can break your budget faster than anything else. If you are financially unprepared, there are options you can consider, such as personal loans.
With the help of personal loan comparison sites, it is easy to compare different lending products that fit your situation.
In this post, we will discuss the best loan comparison sites in Canada and the solutions they offer if you are in a financial crunch.
Key Takeaways
- Personal loan comparison sites make it easy to compare different lending products and find one that fits your situation.
- Some of Canada’s best loan comparison sites are Loans Canada, LoanConnect, LendingArch, Wowa, LowestRates.ca, and Borrowell.
- When choosing the best personal loan, consider the interest rate, loan term and fees since these will dictate how much your total loan cost will be.
What is a Loan Comparison Site?
A loan comparison site is a platform that enables users to find and compare lending products, like personal loans and credit cards, offered by both traditional banks and alternative lenders.
When applying for a personal loan, it is always prudent to check the available options. Through personal loan comparison sites, you can do that in one place.
With just a few clicks, you can find deals tailored to your financial need. You only need to enter your personal details, loan amount, and loan term to get customized results.
Loan comparison websites are programmed to automatically yield search results that match your inquiry. Furthermore, the sites offer the service free of charge.
Best Loan Comparison Sites in Canada
There are many loan comparison sites in Canada, and choosing the best ones can be challenging. Below is a list you can consider.
1. Loans Canada
Loans Canada
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
Interest rate: 2.99% to 46.96%.
Loan term: 4-60 months.
Maximum loan amount: Up to $50,000.
Loans Canada, one of the best loan comparison sites in the country, is a loan search platform that connects financial service providers with borrowers seeking loans, regardless of their credit score.
Launched in 2012, Loans Canada offers options for people with good, fair and poor credit. It simplifies the loan application process using a single and unified application that helps you find the most suitable lender for your loan needs.
Having the largest lender network in the country allows Loans Canada to provide a broad range of services, including:
- Personal loans
- Debt consolidation loans
- Bad credit loans
- Guarantor (Cosigner) loans
- No bank verification loans
- No credit check loans
- No employment verification loans
- Private loans
- Employment insurance loans
To use the site, choose the service you want, fill out the application form, provide the required information, and submit it. Using its technology, Loans Canada will automatically sort through its lender network to find suitable third-party offers and inform you via email or phone.
With a loan limit of up to $50,000, Loans Canada offers one of the highest loan amounts among online lenders. To qualify, you must be a Canadian citizen or resident, be the age of majority in your province, have an income, and have a credit score of at least 300.
Pros
- Easy and quick application
- Accepts borrowers with bad credit
- Loan amount up to $50,000
- User-friendly platform
- No collateral required
- Quick approval and funding
- Flexible payment plans are available
- Used by 1,500,000 Canadians
- Only works with lenders that adhere to Canadian laws and regulations
- Free credit score
- Easy-to-use loan calculator to get estimates on monthly payments
- Available in all of Canada
Cons
- Fees
- Higher interest rates for borrowers with low credit scores
- Personal information required
- No online quotes
- May require credit checks
Read our review of Loans Canada here.
2. LoanConnect
LoanConnect, which dubs itself Canada’s search engine for loans, is an online broker that developed a search engine that enables users to search for loans from its more than 20 partner lending institutions.
Also one of the best loan comparison sites in Canada, LoanConnect offers unsecured loans up to $50,000. It works by connecting you with multiple lenders with just one application. LoanConnect offers the following lending products:
- Personal loans
- Debt consolidation
- Cash loans
- Online loans
- Bad credit loans
The services are available to people with excellent, good, poor or even no credit. You just need to be a Canadian citizen and be the age of majority in your province.
To apply for a loan at LoanConnect, go to the website and complete an online form. After specifying the loan you need, LoanConnect sends you to the lender’s website, where you can finish your loan application.
Pros
- Fast application process
- Quick approval
- Flexible loan amounts
- Available to borrowers with poor credit scores
- Fund availability can be in as little as 12 hours
- No application, origination or brokerage fees
- Available in all Canadian provinces
Cons
- The direct lender you choose may apply charges
- Limited partner lenders
Learn more about LoanConnect in this review.
3. LendingArch
LendingArch is an independent price comparison site that helps Canadians get better loan deals. It offers personal loans, auto loans, business loans, and mortgages. It also has a pool of 40 lenders that provides various lending solutions.
With one application at LendingArch, you can access loan options and the best rates from the site’s network of lenders. To use the site, simply enter your basic information and instantly get matched to loans you will likely get accepted for.
When you submit your application, LendingArch searches its lender networks to find suitable deals for your financial situation. Once your loan application is approved, the funds are deposited instantly into your bank account.
Pros
- Fast application
- Provides quotes in minutes
- Quick loan approval
- Instant funding
- Accepts bad credit
- Provides credit and referral services throughout Canada
Cons
- Performs credit checks on loan applicants
- Access and use of the site may cause personal information to be transferred and stored or processed anywhere in the world.
4. Wowa
Wowa is a platform that offers online real estate and financial tools that Canadians can use to make sensible decisions when buying, selling, or managing property. It also provides a comprehensive section on comparing personal loans from traditional and online lenders.
The site also offers comparison tables for unsecured loans, loans for bad credit, no credit check loans, bad credit car loans, and debt consolidation loans. With detailed comparison charts, Wowa makes it easy for site users to compare lending products and find what lending solution suits them.
Wowa also features a loan calculator on its site. You can use it to determine your estimated loan payment, the total interest you will pay, and your total lifetime payment. You can customize the calculator to find your payment amount for various loan types.
Pros
- Provides direct links to loan applications from different lenders
- Offers comprehensive information on various lending products
- Prominent display of loan calculator that helps you get estimates on your monthly payments and total lifetime payment
Cons
- Not a lender
- The focus is more on the real estate industry
5. LowestRates.ca
LowestRates.ca is an online rate comparison website for various financial products such as loans, credit cards, mortgages, and insurance. It allows you to compare the lowest rates in Canada and instantly get free quotes from over 50 providers.
The platform offers the following loan products: debt consolidation loan, business loan, home renovation loan, medical or dental loan, vacation loan, engagement loan, wedding loan, special occasion loan, education loan, tax loan, rainy day loan, household expenses loan, bridge loan, baby or adoption loan, and car loan.
To apply for a loan, complete the online form, wait to be transferred to a loan partner, confirm eligibility, compare offers, choose your loan, verify your information and receive your loan within 24 hours.
Pros
- Quick online application
- Wide range of loan types
- Fast release of funds
- Free to use and no-obligation comparison website
- Easily view quotes from multiple providers in one place
- Available across Canada
Cons
- Not a lender
- Only connects borrowers to lenders
6. Borrowell
Fintech company Borrowell is known for having teamed up with Equifax to provide free credit score and credit report monitoring services in Canada. Apart from that, Borrowell also offers a variety of banking products like personal loans, mortgages, credit cards, etc.
When you sign up for Borrowell’s free services, you also get access to online marketplaces, which let you compare personal loans, credit cards, mortgages, insurance and others. The site also provides comparison tables featuring various lenders and their products.
Applying for a loan at Borrowell involves signing up at the website to enable it to find loans that match your credit profile. Select your offer and fill out the online application form. Once approved, your lender will make the funds available in days.
Pros
- Free credit score and report monitoring from Equifax Canada
- No credit card, bank account or SIN number required to get free credit report and credit score
- Offers products to build credit history and score
- Provides a personal loan calculator onsite
Cons
- The credit scores and reports are limited to Equifax Canada
- An origination fee of 1-5% of your total loan amount
- $25 NSF fees
7. Smarter.Loans
Smarter.Loans is an independent comparison website that works with over 100 financial companies from Canada and the US. The site provides essential information to help Canadians make smarter financial decisions by educating them about financial products.
The loan and financial directory also connects borrowers with its network of over 50 lenders, offering the loan interest and payment options that work best for their financial circumstances. The lending solutions that Smarter.Loans offer include personal, business, and mortgage loans.
Before getting a loan, the platform offers pre-qualification to help narrow down your borrowing choices. To get a loan, complete an online form and wait to be connected to a lender that offers what you need. After approval, you will receive the funds within 24-48 hours.
Pros
- Quick and easy approval
- Fund release in as fast as 24 hours
- Accepts borrowers with bad credit
- Helps rebuild your credit
Cons
- Does not directly offer any type of financing
- Borrowers with bad credit can get higher interest rates
Pros and Cons of Loan Comparison Sites
Loan comparison sites are excellent tools for finding the cheapest loans, but they also have drawbacks (as enumerated below).
Pros
- Convenience
- Free to use
- Provides a wide array of lenders and loan providers
- Helps you save money
- Instantly provides several quotes
Cons
- No guarantee your loan application will get approval
- Does not include all lenders or loan providers
- Can be used as a starting point only
- May present loan options in a certain way to influence decisions
How to Choose the Best Personal Loan for You
In choosing the best personal loan for you, you must shop around and compare offers to find the best deal for you. Besides that, it is likewise crucial to consider several other factors, such as the loan amount, repayment period, interest rates, fees and charges, and the lender.
Deciding on the loan amount and sticking to it can help avoid taking on too much loan. Choosing a shorter repayment period can also be beneficial since it reduces the overall loan cost. But choose this only if you are sure you will not default on your payments.
It is also ideal to look for a personal loan offer with the lowest total cost, which includes loan terms, interest rates, and fees. Try to pay as little as possible by looking for the shortest term and the lowest interest rate, while ensuring you can afford the monthly payment.
FAQs
Compare loans by looking at their interest rate and APR, loan term, fees (including the origination fee, prepayment penalty, late-payment fee, and insufficient funds fee), monthly payment, and the total amount. Shop around and compare loan options to find the best loan for you.
Fairstone Financial provides fast approval for eligible loan applications. Application is done online or in one of its branches. When your application is approved, you can receive your money directly into your bank account within the day.
These are interest rates (APR), fees and loan terms, which determine the total cost of your loan. Understanding all the costs associated with a loan helps you make an informed decision on whether or not you can afford the loan.
Related: Fairstone Financial Review
