Fortunly's Guide
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Best Debt Consolidation Loans in Canada for 2024

Written By
G. Dautovic
Updated
October 01,2024
Some or all of the products/services listed on this page are from our affiliate partners from which we receive commissions. This, however, does not influence the evaluations in our reviews. Learn more by reading our Advertiser Disclosure.

When you’ve got several credit cards that you wish to close down, or even some outstanding loans, the best course of action is to consolidate your debt under a single payment. But, picking the right lender isn’t as straightforward as it may seem.

That’s why we’ll look at the options for the best debt consolidation in Canada. We’ll show you who the leading loan providers and directories are, what you can expect when you take out such a loan, and how to find the ideal loan provider.

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Top-Rated Debt Consolidation Loans of October 2024

Best for: a large selection of lenders

Loans Canada

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Loans Canada Logo
OVERVIEW

Loans Canada was the very first platform that let Canadians browse lending offers. While not a direct lender, this platform offers side-by-side comparisons and easy access to various lenders based on several parameters you can change to represent your financial situation. Read more

  • Loans for low and fair credit score
  • Great lending network
  • Borrow up to $35,000
Learn More
On Official Website
Loan amounts:
$500 - $35,000
Loan term:
four - 60 months
APR range:
2.99% - 46.96%
Fees:
depend on the lender
Min. credit score:
N/A
Min. revenue:
N/A
Availability:
all Canadian provinces
Funding time:
same-day funding
Best for: fast loan approval

LoanConnect

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

LoanConnect Logo
OVERVIEW

LoanConnect is one of the leading lending directories in Canada. With a big network of lenders and 60-second pre-approvals, it’s one of the fastest routes to a personal loan you can take. Read more

  • 60-second pre-approval
  • Borrow as low as $300
  • Streamlined application process
Learn More
On Official Website
Loan amounts:
$300 - $50,000
Loan term:
3-120 months
APR range:
from 8.99% - 46.96%
Fees:
origination fees charged by the lender
Min. credit score:
300
Min. revenue:
N/A
Availability:
all Canadian provinces
Funding time:
same-day funding
Best for: small loans

Spring Financial

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Spring Financial Logo
OVERVIEW

Spring Financial is ideal if you’re looking for the best consolidation loan that you can pay back quickly. As a direct lender, this company mainly offers smaller loans under $15,000. It also only charges missed payment fees, but not origination fees. Read more

  • Flexible payment intervals
  • Short- and long-term loans
  • All credit scores welcome
Learn More
On Official Website
Loan amounts:
$500 - $15,000
Loan term:
nine - 60 months
APR range:
29.99% - 46.69%
Fees:
$30 missed payment fee
Min. credit score:
N/A
Min. revenue:
N/A
Availability:
all Canadian provinces
Funding time:
same-day funding
Best for: credit checks

Borrowell

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Borrowell Logo
OVERVIEW

Borrowell is one of the biggest directories of Canadian lenders. With 50+ partners and various offers, it is a platform that will help you quickly find an ideal loan and check your credit score for free. Read more

  • 50+ lending partners
  • Free credit score check
  • Lots of educational tools
Learn More
On Official Website
Loan amounts:
$500 - $15,000
Loan term:
up to 60 months
APR range:
up to 39.99%
Fees:
none
Min. credit score:
N/A
Min. revenue:
N/A
Availability:
Alberta, British Columbia, Nova Scotia, Ontario
Funding time:
same-day funding
Best for: unsecured loans

Fairstone

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Fairstone Logo
OVERVIEW

Fairstone is Canada’s debt consolidation loan provider with the longest history - the company is almost 100 years old. At Fairstone, you can get secured and unsecured loans, and the pre-approval takes no more than a minute. Read more

  • Loan calculator
  • Secured and unsecured loans
  • Flexible payment rate
Learn More
On Official Website
Loan amounts:
$500 - $50,000
Loan term:
3-120 months
APR range:
26.99%-39.99%
Fees:
none
Min. credit score:
560
Min. revenue:
N/A
Availability:
all Canadian provinces
Funding time:
same-day funding
Best for: good credit loans

Lendful

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Lendful Logo
OVERVIEW

Lendful has been a favourite lender in Canada for well over 30 years. This is a company you’ll want to loan from if you have a good credit history but need a bit of cash to consolidate all your monthly payments into one. Read more

  • Quick, easy application
  • Loans can be expanded
  • Benefits for early payments
Learn More
On Official Website
Loan amounts:
$5,000 - $35,000
Loan term:
six - 60 months
APR range:
from 9.90%
Fees:
$50 insufficient funds fee
Min. credit score:
660
Min. revenue:
N/A
Availability:
all Canadian provinces
Funding time:
one business day
Quick Breakdown

6 Best Debt Consolidation Loans Available in Canada:

  • Loans Canada - for browsing lenders

  • LoanConnect - for fast loan approval

  • Borrowell - for credit checks

  • Fairstone - for unsecured loans

  • Spring Financial - for small loans

  • Lendful - for good credit loans

Detailed Reviews of Debt Consolidation Loans in Canada

Loans Canada Review

Quick Facts
Min. credit score:
N/A
Estimated APR:
2.99% - 46.96%
Loan amount:
$500 - $35,000
Loan term:
four - 60 months

When encountering a company called Loans Canada, you can be pretty sure what its area of expertise is. Like some other companies dealing with loans, this isn’t a direct lender but a directory of loan providers, a mediator for the customers.

Funding Types Offered

A wide variety of offers covers all Canadian provinces and doesn’t exclude even the customers with less than stellar credit history. You can repay loans at this directory ranging from $500 to $35,000 in up to 60 months. Of course, the details depend on which lender you’re signing up with.

To find the right loan for yourself, you’ll use a simple filtering tool with four settings - province, employment status, monthly income, and credit range. Then, the site will create multiple offers and direct you to some of its partners that should be able to fulfil your loan request.

Reasons To Choose Loans Canada

The company works with a massive network of lenders. You'll likely find it here if you want a small loan with a short repayment term. Since this was the first company of its kind in Canada, we were glad to see that it’s still very transparent about who it’s working with and lets customers use various tools to manage their finances.

Reasons To Look Elsewhere

The only reason not to work with Loans Canada is if you’d rather work with a direct lender. Even then, you can use this site to search for providers and then decide whether you’ll go to them directly or take advantage of the offers on Loans Canada.

Key Benefits:

  • Loans for low and fair credit score
  • Great lending network
  • Borrow up to $35,000
+ Show more

LoanConnect Review

Quick Facts
Min. credit score:
300
Estimated APR:
8.99% - 46.96%
Loan amount:
$300 - $50,000
Loan term:
3-120 months

LoanConnect is a directory of businesses that can provide you with a custom-tailored loan. It’s also one of the most popular sites of this kind, with over one million satisfied customers.

Funding Types Offered

It takes just under a minute to complete the application and get pre-approved for a loan since you’ve only got to fill out a single page during the application process. You can borrow anywhere between $300 and $50,000, which you can pay off in up to 120 months. Depending on the lender, the upper repayment limit can be lower, usually 60 months.

Since LoanConnect isn’t a direct lender, you don’t have to meet specific requirements. Instead, the site will try to match you to a lender that can provide you with cash or work out a similar deal through an agent. Finding a loan is generally easier if your credit score and annual income are high. Also, while the site doesn’t charge any fees, the company you’re loaning from might. In Canada, debt consolidation loans usually have an origination fee of up to $100.

Reasons To Choose LoanConnect

The platform is straightforward, and the whole process couldn’t be more streamlined. Most people will find offers on their very first search, and the network of lenders is trustworthy. Funding is fast, too, with loans processed within a single day.

Reasons To Look Elsewhere

If you’d rather work directly with a lender, LoanConnect might not be for you. Since the offers are generated after you’ve entered your details, you can’t shop around beforehand and decide whether to provide private info.

Key Benefits:

  • 60-second pre-approval
  • Borrow as low as $300
  • Streamlined application process
+ Show more

Spring Financial Review

Quick Facts
Min. credit score:
N/A
Estimated APR:
29.99% - 46.69%
Loan amount:
$500 - $15,000
Loan term:
nine - 60 months

Spring Financial t makes getting a personal loan a breeze, with same-day funding and some of the lowest credit score requirements in the business. The company claims all credit scores are welcome.

Funding Types Offered

Spring Financial is the variety of loans you can take out. You can request between $500 and $15,000, and your term can be as short as nine months. So, ideal for smaller loans that you can repay quickly. Not only will you efficiently consolidate your debt but also improve your credit score along the way.

To get your loan, you’ve got to fill out a simple form on the website, providing basic information to give the lender an idea of your capability to pay off a loan. Then, you’ll receive a personalized loan offer, all without impacting your credit score

Reasons To Choose Spring Financial

One of the biggest reasons many Canadians borrow from Spring Financial is the low credit requirements for most loans. Banks and other lenders may require you to have an impressive credit history, so finding a loan with a fair interest rate is always good. You’ll also have an option to pay off your loan monthly or bi-weekly, whichever suits you the most.

Reasons To Look Elsewhere

Spring Financial's platform is a bit barebones. For example, you can’t see the APR before you’ve already filed an application. That being said, this company has an impressive 4.8 rating on TrustPilot from thousands of satisfied customers, so it’s still getting a recommendation as a highly trusted source for personal loans.

Key Benefits:

  • Flexible payment intervals
  • Short- and long-term loans
  • All credit scores welcome
+ Show more

Borrowell Review

Quick Facts
Min. credit score:
N/A
Estimated APR:
up to 39.99%
Loan amount:
$500 - $15,000
Loan term:
up to 60 months

A slogan that will greet you on the Borrowell website says, “Make financial prosperity possible for everyone.”

Borrowell is, first and foremost, a directory of debt consolidation companies and an educational tool designed to teach you all about credit in Canada and how to manage your expenses.

Funding Types Offered

Instead of providing you with a loan, Borrowell will point you toward its network of lending partners. It works with more than 50 lenders; so far, more than two million Canadians have used this service to get a personal loan. 

The amounts you can borrow through this network on this site are on the lower end of the spectrum. Most providers offer to consolidate your debt for up to $12,500 or similar amounts, with just a few raising the limit to $15,000.

Repayment terms are within the standard 60-month time frame, with most lenders offering flexible terms depending on your financial situation. The same goes for APR and interest rates.

Reasons To Choose Borrowell

Most sites that list loan providers don’t go much beyond that. What Borrowell does well is educating its visitors on all the loans they can take and how to properly take care of their finances. Additionally, you can check your Equifax credit score rating for free on this site; it takes just three minutes.

Reasons To Look Elsewhere

Unfortunately for Borrowell, while it’s an excellent service, it’s only available in four provinces. For that reason, many Canadians won’t be able to take advantage of exclusive loan offers on this site, which is a shame.

Key Benefits:

  • 50+ lending partners
  • Free credit score check
  • Lots of educational tools
+ Show more

Fairstone Review

Quick Facts
Min. credit score:
560
Estimated APR:
26.99%-39.99%
Loan amount:
$500 - $50,000
Loan term:
3-120 months

Founded in 1923, Fairstone is one of the oldest loan providers in Canada. It may have changed names throughout the years, but it hasn’t changed one thing - the quality of service it provides to its customers. This company specializes in personal loans, from emergency and car repair loans to debt consolidation with secured and unsecured options to choose between.

Funding Types Offered

Fairstone’s unsecured loan offers start at $500, and you can request up to $25,000 through its online form. The upper limit is slightly lower than what we’ve seen from other companies. Still, it’s worth reiterating that Fairstone is a direct lender, so you’ll be working one-on-one with an agent.

For secured loans, the limit goes up to $50,000, and the repayment term can be extended to 120 months.

While each loan offer is created differently, there are some common grounds here. Loans come with an APR that’s consistently below 40%, which is already highly competitive, and you won’t suffer any prepayment penalties if you go with an unsecured loan.

The application process is quick, and you can even get an estimate of your monthly payment using the on-site calculator.

Reasons To Choose Fairstone

You won’t even need to visit your local branch using the online application, and the money becomes available within the same day. Additionally, you can choose to pay for your loan bi-weekly or monthly, giving you more control over the frequency of your payments.

Reasons To Look Elsewhere

The amount you can get through an unsecured loan is lower than what many competitors offer now. If you’re in the market for a higher loan and don’t want to put down your house as a security, then it’s best to check other lenders on this list.

Key Benefits:

  • Loan calculator
  • Secured and unsecured loans
  • Flexible payment rate
+ Show more

Lendful Review

Quick Facts
Min. credit score:
660
Estimated APR:
from 9.90%
Loan amount:
$5,000 - $35,000
Loan term:
six - 60 months

For 35 years, Lendful has been helping Canadians consolidate their debt. The company is laser-focused on personal loans and, throughout the years, it has streamlined the application process to make it as quick and simple as possible. We value transparency, and Lendful provides it.

Funding Types Offered

Lendful’s loans are on the medium to the high side, at least regarding amounts. This lender's unsecured debt consolidation loan ranges between $5,000 and $35,000, and the APRs start at just under 10%. With Lendful, you can be more flexible with your payments as it offers weekly, bi-weekly, and monthly payments.

There are no fees either, especially the origination fee that’s very common, but do take care about making your payments on time.

Another great thing about Lendful is the application process. It takes just two minutes to complete, doesn’t require too much input, and the company will usually send you a loan offer on the same day.

Reasons To Choose Lendful

You won’t need to look at third-party sites to find out the terms and conditions for your loan. It’s all right there on the Lendful homepage. Furthermore, if during your loan term you need more money, you can request a top-up.

Reasons To Look Elsewhere

Lendful’s requirements can seem relatively high to potential customers. The company asks for proof of good credit score and information on credit history. These requirements could prove to be too much for people looking to consolidate their debt. 

Key Benefits:

  • Quick, easy application
  • Loans can be expanded
  • Benefits for early payments
+ Show more

A Guide to Debt Consolidation Loans in Canada

For many Canadians, debt consolidation is sometimes the best option to simplify monthly payments on multiple debts. If you’re still unsure whether you need such a loan, read our short guide to learn more about it.

What Is Debt Consolidation?

Debt consolidation is taking out a loan to pay out all your outstanding debt. When you have several smaller debts, like credit cards or other loans, those are all different payments you need to monitor. Additionally, some might have high interest rates.

If this situation applies to you, taking a consolidation loan to pay off everything and continue with a single, usually lower, monthly payment is a commendable approach. The best debt consolidation will also complete those previous loan payments for you, so your only worry is paying off the one new loan.

Is Debt Consolidation for Me?

Whether or not you should consolidate your debt typically depends on your financial situation. If you can manage your debts and they all have low interest rates, then maybe it’s unnecessary to consolidate all of that under a new loan. However, if such a loan would decrease your overall APR, you should go for it. 

Don’t forget - clearing out loans and outstanding debts improves your credit score. And credit card debt consolidation is a great way to do it.

Evaluation Criteria

Our Methodology for Reviewing Online Debt Consolidation Loans in Canada

Picking the best companies that deal with personal loans for debt consolidation isn’t as simple as it seems. There are several significant factors to consider for each of them. We’ve already done the research, and in the following section, we’ll show you the main criteria we use for reviewing Canadian loan providers.

Loan Requirements

Lenders are very picky when it comes to whom they want to work with. They ask about annual income, any existing debt, whether you own your home, and other personal questions. But, before everything else, they’ll check whether you’re of legal age and a registered citizen of Canada.

You’ll be required to provide information about your credit history and, thus, your credit score. Some lenders simply don’t offer bad credit debt consolidation loans, and they disqualify such customers immediately. If you don’t see a credit score specified for a lender on our list, the company analyzes your financial status before deciding whether to offer you a loan.

We also check for the availability of these loans. Sometimes, lenders don’t work across all Canadian provinces, limiting options for people looking to consolidate their debt.

Loan Amounts and Terms

The number one reason people choose debt consolidation is to cover all their other loans with a single monthly payment. By that logic, if a lender can’t provide you with enough money to cover your outstanding debts, then such a loan loses its purpose.

There isn’t a default amount for online debt consolidation loans, though. The loans usually don’t go above $50,000, and the lowest start at $500 on most lending sites.

Regarding payment terms, the usual range is six to 60 months. Of course, it’s up to you to choose the tempo of repayments most comfortable for you and your income.

Fees and Annual Percentage Rates

Every loan comes with extra baggage in annual percentage rates (APRs). This number is significant, as it should be the same or lower than what you currently have on all your debt combined. After all, you want to decrease the monthly payment.

We also take note of any fees that lenders may charge, such as origination fees and late or pre-payment fees.

FAQ

Can debt be forgiven in Canada?

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There is much misleading information about debt forgiveness for Canadians and even some companies offering debt settlement. Still, the current options are either proclaiming bankruptcy or applying for a consumer proposal which acts as debt consolidation.

How can I get all my debt into one payment?

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Using a debt consolidation loan, you can pay off all your outstanding debt and focus on a single monthly payment. You can learn more about the best consolidation loans in this very article.

What are the downsides to consolidating debt?

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It’s worth remembering that debt consolidation it’s still debt and not a miracle cure for your financial situation. You’ll still have an obligation to fulfil monthly payments if you don’t want to get into even more debt, and in some cases, you may have to pay upfront fees when taking out a new loan. Worst-case scenario, the loan for debt consolidation may have a higher APR than your previous loans.

Does debt consolidation mess with your credit score?

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Yes, but only temporarily. When applying for the best debt consolidation, Canada’s credit bureaus get a report of that activity, which can slightly decrease your score. Once you start paying your debt off, you’ll see your credit score improving. Ultimately, you’ll receive a better score, especially if you make your payments on time.