Equipment Loans · Ontario
Equipment Loans in Ontario
Equipment loan in Ontario follow the federal lending ceiling of 35% per year, with provincial licensing layered on top. Licensed regime — federal cap applies.
- Province Ontario (ON)
- Capital Toronto
- Payday lending Licensed regime — federal cap applies
- Cities covered 40
An equipment loan finances one specific asset, such as a truck, a machine or a trailer, and that asset secures the borrowing. The lender registers a security interest in the equipment, so if payments stop, the lender has a legal claim on it.
Why the asset drives the decision
Because the equipment is collateral, the lender's questions are concrete. What is it, what is it worth today, how quickly does it lose value, and how will it earn money? The financing term usually tracks the asset's useful life, so the loan is paid off while the machine still holds value.
- New equipment often supports a longer term than used equipment.
- A larger down payment reduces the amount financed.
- The security registration encumbers the asset.
- Insurance is normally required for the life of the loan.
What shapes your pricing
Cost depends on the asset, the down payment, the term and the borrower's financial picture. Business statements, tax filings and a trading history all help. A sole operator or a young company may find the lender leaning harder on the equipment's resale value and on whether the owner will personally back the debt.
At the end of the term, some contracts finish with ownership clear, while others carry a buyout or an upgrade option. Ask which structure you are signing before you commit. Financing costs also move with broad interest rates, which the Bank of Canada — rates publishes.
Loan, lease or line of credit?
- A loan buys the asset and builds ownership as you pay.
- A lease rents the use of it, which can suit equipment that dates quickly.
- A line of credit suits smaller, repeated purchases.
Match the tool to the asset's working life. Financing a machine over a longer period than it will realistically last is a common and expensive mistake.
LoanGoose matches borrowers with lenders and does not lend, set rates or make credit decisions itself. For a significant commitment, a licensed professional can help you read the terms.
LoanGoose is a loan matching and comparison service, not a lender. The lowest rates are only available to the most qualified applicants.
Cost rules that apply in Ontario
| Rule | Figure | What it means | Publisher |
|---|---|---|---|
| Criminal rate of interest (federal ceiling) | 35% per year | Above this, an agreement is a criminal offence. | Government of Canada (Justice Laws) |
Your own rate is set by the lender and depends on your file.
Ontario cities
| City | 2021 population | Equipment Loans page |
|---|---|---|
| Toronto | 2,794,356 | Equipment Loans in Toronto |
| Ottawa | 1,017,449 | Equipment Loans in Ottawa |
| Mississauga | 717,961 | Equipment Loans in Mississauga |
| Brampton | 656,480 | Equipment Loans in Brampton |
| Hamilton | 569,353 | Equipment Loans in Hamilton |
| London | 422,324 | Equipment Loans in London |
| Markham | 338,503 | Equipment Loans in Markham |
| Vaughan | 323,103 | Equipment Loans in Vaughan |
| Kitchener | 256,885 | Equipment Loans in Kitchener |
| Windsor | 229,660 | Equipment Loans in Windsor |
| Oakville | 213,759 | Equipment Loans in Oakville |
| Richmond Hill | 202,022 | Equipment Loans in Richmond Hill |
| Burlington | 186,948 | Equipment Loans in Burlington |
| Oshawa | 175,383 | Equipment Loans in Oshawa |
Compare equipment loans options
A matching step, not an application — we are not a lender and no amount, term or rate is promised here.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
Questions
Can I get equipment loan in Ontario?
Availability depends on the product and the lender. Where Ontario licenses the product, the federal cost cap and the criminal rate ceiling still apply.
What rules apply to equipment loan in Ontario?
The federal criminal rate of interest of 35% per year applies everywhere in Canada. Provincial licensing adds disclosure and licensing requirements on top, and provinces that license payday lending may set a lower cost cap than the federal one.
How do I compare equipment loans in Ontario?
Compare the total amount you would repay, not the advertised rate. Ask for the full cost of borrowing in writing, check the lender is licensed, and read the prepayment terms before signing anything.
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Sources
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.