Get a Personal Loan in Ottawa

There are two major types of personal loans available in Ottawa. Secured loans are backed by collateral, for example a car or a home, while unsecured loans are not protected by collateral. Unsecured loans generally have higher interest rates and more stringent eligibility requirements, while collateral is often required for large loan amounts.

The majority of personal loans in Ottawa are unsecured and can carry either fixed or variable interest, with annual interest rates varying widely between lenders and loan types. Your best bet for finding a personal loan that works for you is to compare offers from several lenders.

To qualify for a personal loan in Ottawa, you must: 

• Have a Canadian bank account

• Be a Canadian resident 

• Be 18 years old or older

• Have at least one-year credit history 

• Meet minimum income requirements with consistent employment history

Applying for a personal loan in Ottawa can be done in person or online. Once you know that you are eligible, it’s worth collecting the documents that you will need to submit a personal loan application. Some of the documents you should have on hand are:

• Valid form of ID: for example, an Ontario driver’s license

• Proof of residency: for example, utility bills

• Proof of employment and income: for example, pay stubs or bank deposit slips

• Social Insurance Number

Every lender has different credit score criteria. Many lenders will look for a credit score of at least 660, no history of bankruptcy, and a low debt-to-income ratio. 

If your credit score is below 660, there are still personal loan options available. Sign up for Borrowell to see what loan options are available based on your credit score.

Personal loans aren’t just more debt. If used properly, personal loans can help improve your credit score by resolving higher interest credit-card debt or avoiding credit utilization. 

Because personal loans are considered an installment loan, as opposed to credit card debt, these will boost your credit score and contribute to a better credit mix. Personal loans can also improve your credit score by helping you establish a payment history. Of course, to benefit from this you have to meet the loan repayment schedule in full and make on-time payments.

There are a lot of reasons why you might be applying for a personal loan, including as a credit loan to improve your financial health. Other things people use their loans for include:

• Emergency expenses, such as medical bills

• Unexpected costs 

• Vacations or other large purchases

• Vehicle purchase or repair

• Home improvement

Personal loan amounts in Ottawa range from $500 up to $35,000. When applying for a loan, the loan amount that you qualify for will depend on a number of factors. Lenders will want to know that you can pay back the loan, so lower-risk borrowers will be able to secure larger loans.

One way for lenders to know if you are a risky borrower is to check your payment history. This makes up 35% of your credit score and indicates whether you will stick to the repayment timeline. Aside from maintaining credit health, paying down your personal loan on time will help you qualify for more favourable loans in the future.

Like all lenders in the province of Ontario, personal loan providers in Ottawa cannot charge more than 60% interest. Ontario law also requires that all lenders are licensed and comply with federal and provincial regulations — Borrowell only works with vetted and licensed loan partners. 

Most borrowers in Ottawa get unsecured, variable-rate loans that fall between $500 and $30,000 and carry an average 12–30% annual interest. The typical term for repayment varies according to the loan amount and the borrower’s profile, but is generally between six months and six years.