Ontario has higher housing costs and a more expensive cost of living than all other Canadian provinces. This can make it much more difficult for Ontarians to manage their finances and stay out of debt.
When it comes to financial advice, one of the first things people in Ontario want to know is how to get out of debt. Credit card debt, student loans, mortgages, and more often pile up until we are overwhelmed.
At this point, it can be hard to think about how to even make a monthly payment, let alone pay off the debt completely.
Thankfully you have several options available to you, with the most popular option being debt consolidation. Debt consolidation is when a consumer takes out a loan they can then use to pay off all their debts from credit cards or other loans completely.
Debt consolidation provides you with more streamlined finances and one easier to manage monthly payment. A debt consolidation loan should have a lower interest rate than the rest of your debt to ensure you are not incurring more debt in the process. As well as Ontario and Toronto, we also took a look at the top debt consolidation loans in Edmonton, Calgary, BC, and Alberta.
If you are looking for a debt consolidation loan in Ontario, Loans Canada and LoanConnect are a great place to start. Debts, consolidation, and helping Canadians is their specialty. They can help pair Canadians with the perfect lender that offers debt consolidation loans. Let’s take a deeper look into both platforms and your debt consolidation options.
1. Loans Canada
The first way you can find the perfect debt consolidation loan is through Loans Canada. Loans Canada is a lending platform that partners with lenders across Ontario. This includes Toronto and Brampton. They also provide loans to all other Canadian provinces. These lenders offer various types of debt relief as well as car, personal, and business loans.
Loans Canada is partnered with lenders across Canada. They specialize in matching borrowers with the perfect lender. They do this based on your credit file, finances and loan requirements.
They offer debt consolidation loans to help you reduce your debt, streamline your finances and improve your financial situation. They are also partnered with lenders who specialize in supplying loans to those with poor credit or no credit history. This means you are likely to be accepted for a debt consolidation loan, regardless of your credit history.
Loans Canada acts as a middleman between you and the loan provider. You simply complete a questionnaire on their website, and you will be provided with a list of loan options. You can tailor your search to include your desired loan amount and loan term. If you input your credit score, only loan providers that are likely to accept your application will be recommended to you.
One of the best things about Loans Canada is they can even help Canadians with bad credit find a loan to consolidate their debt.
Below are some of the pros and cons of using Loans Canada.
Pros
- If you have a good credit score, interest rates could start as low as 5.49%. They can go up to 25%, though.
- Consolidating your debt has never been easier as the entire process can be done completely online with Loans Canada.
- You could receive payment of your loan within 48 hours of being approved.
- If you have a lot of debt that needs consolidating, Loans Canada offers loans up to $300,000.
- Their website is easy to use and navigate, even if you’re not tech-savvy. Searching for debt consolidation loans on Loans Canada is quick and easy.
- Loan terms range from 6 months to 60 months, depending on your needs. You have the option to choose the loan term that is best for you.
- Regardless of your credit score, Loans Canada can help you find a lender to help consolidate your debt. There is no minimum credit score requirement.
- There is no minimum annual income requirement.
- Loans Canada will show you all your lender options in a chart. This makes comparing your loan options much easier.
- The Borrower Community allows you to rate and review lenders. Loans Canada will then remove any lenders from their platform who have consistently bad reviews.
- Loans Canada provides free educational resources on a wide range of topics. This includes information on how to improve your credit score and reduce your debt.
- Loans Connect can be contacted in a variety of ways, including by phone, email and social media.
Cons
- Lender options are limited to those who partner with Loans Canada.
- Loans Canada does not have one set of terms and conditions for consolidation loans. This is because each lender determines their conditions with you.
- If you have a bad credit score, your interest rate will be higher.
2. LoanConnect
Another lending platform that can help you with debt relief regardless of your credit score is LoanConnect. LoanConnect is similar to Loans Canada as it can also help Canadians to search for the perfect lender. LoanConnect acts as a middleman between you and the loan provider.
Each lender is carefully vetted and approved by LoanConnect. LoanConnect also ensures the protection of your personal information end to end.
No matter what type of loan you need, LoanConnect has you covered as they offer a wide range of loans. They offer debt consolidation loans from $500-$50,000. Loan terms range from 6-60 months.
Completing an application is quick and easy. You can complete a general search of debt consolidation loans. Alternatively, you can opt for pre-approval. Pre-approval takes less than 5 minutes. LoanConnect will first access your credit score. They will then use your credit profile to show you which debt consolidation loans you are likely to be accepted for. You can then tailor your search to include your specific requirements.
You can choose to apply for an unsecured personal loan or an installment loan. LoanConnect is very popular with individuals looking to consolidate their debts. This is because there is no minimum credit requirement. This means even those with a bad credit score may be accepted for a loan.
LoanConnect offers access to instant approval credit at competitive rates. They are partnered with private lending institutions across Canada to help you get the best rates.
Let’s look at more of the pros and cons of this lending platform.
Pros
- You can choose your loan term from 6 months to 60 months.
- Borrowers can have bad credit, as long as your debt is not more than 60% of your income.
- It is easy to find a lender that will approve you. The eligibility requirements are that you be a Canadian citizen and of the age of majority in your province or territory.
- Depending on your credit score, interest rates can start as low as 4.6%.
- Searching for a loan on LoanConnect to consolidate your debt is completely free.
- There is no obligation to go with any lender that LoanConnect suggests.
- LoanConnect offers 12 different types of loans.
- You can receive your funds the very same day.
- There is no minimum credit score requirement.
- There is no minimum income requirement.
- There is no impact on your credit score if you search for a loan or if you apply for pre-approval.
- Searching for loans are applying for pre-approval does not affect your credit score.
- You can customize your debt consolidation loan to fit your requirements, regardless of your credit score.
- The platform is completely free to use and has no obligation. You are not obligated to commit to any lenders that LoanConnect recommends to you.
Cons
- If your credit score is bad, your interest rate will be higher.
- If your debt is more than 60% of your income, your application will be rejected.
3. Borrowell
Borrowell is one of the most popular online lenders in Canada, with more than 1.5 million customers countrywide. They are currently connected with more than 50 financial partners across Canada. They offer a variety of financial products, including debt consolidation loans.
Debt consolidation loans with Borrowell are offered by their partnered lenders to help you streamline your debt repayments. Borrowell aims to match you with a loan provider who offers you a lower overall interest rate than your current debts.
Borrowell is partnered with Equifax. If you sign up on Borrowell’s online platform, you can receive your credit score free of charge. This will help you to see the likelihood of your being approved for a debt consolidation loan. Borrowell will then create a list of debt consolidation loan providers who are likely to accept your loan application. You can then view the loan repayment options and interest rates and compare this to your current repayments.
Borrowell also offers personalized recommendations on how to improve your credit score. They also offer advice on how to qualify for the best interest rates.
When considering your application for debt consolidation loans, Borrowell will consider several factors. These include your credit score, the likelihood of you making repayments and the value of any collateral, if applicable.
Let’s take a look at some of the pros and cons of applying for a debt consolidation loan with Borrowell.
Pros
- Signing up for Borrowell is completely free of charge. Access your credit score and view your loan options without any financial commitments.
- Borrowell does not perform a hard credit check until you are ready to apply for a loan. This helps to protect your credit score.
- Your personalized loan results will only include debt consolidation loans that you are likely to be accepted for. You can then tailor this list to include your specific requirements.
- You should have access to your loan within 48 hours.
- Both secured and unsecured debt consolidation loans are available.
- Borrowell also offers other alternatives to debt consolidation loans. This includes home equity loans and balance transfer credit cards.
- They are partnered with specific lenders who offer debt consolidation loans to low earners.
- The online platform and mobile app allow you to check your credit score for free. It also helps you to find the perfect loan for your needs and financial situation and improve your long-term credit rating and financial health. Borrowell also offers free weekly updates on your credit score.
- Even those who have experienced bankruptcy can apply for a debt consolidation loan.
- Flexible repayment options are available. There are usually no fees or financial penalties if you choose to repay your loan early.
- Borrowell has an A+ rating with the Better Business Bureau (BBB).
Cons
- Those with a bad credit rating are not likely to be accepted for a debt consolidation loan.
- Eligibility requirements may be stricter than some of Borrowell’s competitors.
4. RBC Royal Bank
RBC is one of the largest commercial banks in Canada. They have been operating for more than 150 years and currently have more than 17 million customers across Canada. RBC was recently named as the North American Retail Bank of the Year for the third consecutive year.
RBC has the lowest finding costs of any lender in Canada. This means they can match any loan rate on the market.
RBC offers you the option to consolidate your debt using a debt consolidation loan, a line of credit or an RBC Homeline Plan.
Their website offers a debt consolidation calculator. You simply select your balance type, loan amount and repayment options to view your monthly repayment amount.
You can opt for pre-approval when applying for a debt consolidation loan with RBC. This allows you to see the proposed interest rates and the loan terms, without making a financial commitment. Pre-approval does not involve a hard credit check, so will not have a negative effect on your credit score.
RBC also offers customers a debt reduction plan. They help you to improve your cash flow and reduce your debt faster. To do this, you need to decide your main debt reduction goal. RBC will then help you to create a plan of how to achieve your goal faster.
Let’s take a look at the pros and cons of RBC’s debt consolidation loans.
Pros
- RBC provides a plethora of educational resources. This includes video tutorials on how to manage and reduce your debts.
- Debt consolidation loan terms range from 1-5 years. You can select the loan term that best fits your financial requirements.
- You can choose a fixed payment schedule that suits your needs and your budget.
- You can leverage the equity in your home to secure a lower rate.
- You can opt to make the minimum payment and then pay more any time your budget allows it.
- Access your credit score for free with RBC online banking.
- RBC offers free guidance and support from an RBC advisor.
- Customers of RBC are offered better rates on other financial products. They are also more likely to be accepted for a second product.
- There are more than 1,000 branches across Canada. This means you can arrange your loan in person or visit a branch if you require help or support. You can also apply for debt consolidation loans online and over the phone.
Cons
- The financial penalties if you do not make a repayment are usually higher with bigger banks such as RBC.
- The eligibility requirements for bank loans are notoriously more difficult. RBC is also less likely to accept your application if you do not have a good credit score.
5. Fairstone
Fairstone is a community-based lender who has provided responsible loans for more than 100 years. They are the leading non-bank lender for personal loans in Canada.
They offer debt consolidation loans between $500-$50,000. They offer loan terms between 12-120 months.
To get a debt consolidation loan with Fairstone, you first need to complete a loan quote. To do this, you need to enter a few personal details to receive your personalized quote. Your quote is free f charge and has no financial obligation. It also has no impact on your credit score.
Once you have chosen your loan, Fairstone will connect you with a lending specialist. They will then customize your loan based on your requirements. You can then finalize your loan application online or in a branch. You can even receive your funds the very same day.
Fairstone also offers a loan calculator on their website. This allows you to see an estimate of your loan payments. You can customize your results by changing the payment frequency and loan term.
Below is a list of the pros and cons of debt consolidation loans with Fairstone.
Pros
- Your lending specialist will help you to find a manageable payment schedule that suits your needs and budget.
- You can choose to make repayments bi-weekly, semi-monthly or monthly.
- Both secured and unsecured debt consolidation loans are available.
- Fairstone offers debt management tools and educational resources to help you manage your debt and improve your finances.
- Homeowners can access higher debt consolidation loans.
- Debt consolidation loans are available even if your credit score is only rated as ‘fair’.
- Fairstone has a 98.7% customer satisfaction rate.
- There are more than 240 branches across Canada.
- You can customize your loan to meet your financial requirements.
- Your loan can be directly deposited into your bank account. Deposits can be made the same day your loan is approved.
- Fairstone offers lower interest rates compared to many of its competitors.
- You will receive a fixed interest rate for the duration of your loan.
Cons
- Unsecured debt consolidation loans are only available up to $25,000.
- It may take several days to have your loan application approved.
The Bottom Line
Being in debt from your credit cards or other loans is nothing to be ashamed of. In fact, almost 75% of Canadians are in debt. Once you incur debt, it can be hard to get out of it. Talking to a non-profit credit counsellor about your financial situation is a good place to start. They should be able to give you debt management advice.
If they suggest debt consolidation and you want to go ahead with it, Loans Canada and LoanConnect are great lending platforms. You can ensure you are getting the best debt consolidation loan possible that fits your needs.
Stop relying on your credit card and start your debt management journey today. Complete a free search on Loans Canada or LoanConnect now.
