Secured Loans · Ontario
Secured Loans in Ontario
Secured 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
What makes a loan secured
A secured loan is backed by an asset the lender can claim if you do not repay. That asset, called collateral, lowers the lender's risk, which usually means a lower cost than an unsecured loan. The catch is that the risk does not disappear; it moves to you. Default can mean losing the thing you pledged.
Common kinds of collateral in Canada
- Home equity. The largest and cheapest source for many borrowers, and the most serious to lose.
- A vehicle. Common for car loans and for some personal loans.
- Savings or investments. Some lenders will lend against a deposit you hold with them.
- Business assets or equipment. Used when the borrowing is for a business.
Secured versus unsecured
An unsecured loan relies on your promise and your credit history alone. It is simpler, and nothing you own is directly on the line, but it usually costs more and the amount offered may be smaller. A secured loan can unlock a larger amount, and sometimes a yes where an unsecured application would be declined.
If your home is the collateral, the limits matter. A home equity line of credit at a federally regulated lender is generally capped at 65% of appraised property value, with total secured lending usually limited to 80%. The OSFI Guideline B-20 explains the underwriting approach those lenders use, and the FCAC — debt and borrowing guidance is a good place to review how different debts behave.
Questions to ask before you pledge an asset
- Can you keep repaying if rates rise or your income dips?
- What exactly happens if you miss a payment?
- Could you borrow less and keep the asset out of it?
- Is the cost genuinely lower once every fee is counted?
How LoanGoose helps
LoanGoose is a loan matching and comparison service, not a lender. We do not lend, set rates or approve anyone. We help you understand the categories of secured borrowing so you can compare them with unsecured options. Whether pledging an asset is wise depends on your circumstances, and a licensed professional should be part of that decision.
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 |
|---|---|---|---|
| Home equity line of credit limit (federally regulated lender) | 65% of appraised value | Total secured lending against the property is usually capped at 80%. | Office of the Superintendent of Financial Institutions |
| Mortgage qualification — total debt service | about 44% | A stress-test rate above the contract rate is applied too (Guideline B-20). | Office of the Superintendent of Financial Institutions |
| 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 | Secured Loans page |
|---|---|---|
| Toronto | 2,794,356 | Secured Loans in Toronto |
| Ottawa | 1,017,449 | Secured Loans in Ottawa |
| Mississauga | 717,961 | Secured Loans in Mississauga |
| Brampton | 656,480 | Secured Loans in Brampton |
| Hamilton | 569,353 | Secured Loans in Hamilton |
| London | 422,324 | Secured Loans in London |
| Markham | 338,503 | Secured Loans in Markham |
| Vaughan | 323,103 | Secured Loans in Vaughan |
| Kitchener | 256,885 | Secured Loans in Kitchener |
| Windsor | 229,660 | Secured Loans in Windsor |
| Oakville | 213,759 | Secured Loans in Oakville |
| Richmond Hill | 202,022 | Secured Loans in Richmond Hill |
| Burlington | 186,948 | Secured Loans in Burlington |
| Oshawa | 175,383 | Secured Loans in Oshawa |
Compare secured 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 secured 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 secured 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 secured 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
- OSFI Guideline B-20 — residential mortgage underwriting —
- Criminal Code s. 347 — criminal rate of interest —
- FCAC — debt and borrowing —
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.