Long term loans in Canada are instalment loans repaid in fixed monthly payments over 12 to 60 months, for $300 to $20000, priced at or below the 35% APR criminal rate ceiling. A longer term means a smaller payment and more total interest: $2000 over 36 months costs $1257 in interest at the ceiling, against $399 over 12.
What counts as a long term loan in Canada?
A long term loan in Canada is an instalment loan repaid over 12 months or more, up to 60 months through the lenders WizardLoans.ca compares, with one fixed monthly payment and a known payoff date. That separates it from loans due on your next paycheque and from short 3 to 6 month plans.
A $3000 repair bill repaid over 24 months costs a set amount each month and never balloons; the same bill on a credit card at a revolving minimum can drift for years. Our guide to what an installment loan is covers the mechanics, and our page on online installment loans compares the $300 to $20000 offers themselves.
What do long term loans cost?
Every legal loan in Canada prices at or below the 35% APR criminal rate ceiling, so $2000 at the ceiling costs $399 in interest over 12 months, $809 over 24 and $1257 over 36. A lender pricing below the ceiling moves every number down:
| Term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| 12 months | about $200 | about $2399 | about $399 |
| 24 months | about $117 | about $2809 | about $809 |
| 36 months | about $90 | about $3257 | about $1257 |
At the ceiling, $10000 over 36 months is $452 a month and $16285 repaid, against $298 a month and $10741 repaid at the bank prime rate of 4.70%; both rates run to 84 months below:
| Rate | Term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|---|
| 35% ceiling | 36 months | $452 | $16285 | $6285 |
| 35% ceiling | 60 months | $355 | $21294 | $11294 |
| 35% ceiling | 84 months | $320 | $26904 | $16904 |
| RBC prime 4.70% | 36 months | $298 | $10741 | $741 |
| RBC prime 4.70% | 60 months | $187 | $11240 | $1240 |
| RBC prime 4.70% | 84 months | $140 | $11754 | $1754 |
Where these numbers come from: the 35% rows are the criminal interest rate ceiling, the most any lender in Canada can charge. The 4.70% rows use the Royal Bank of Canada prime rate shown on the RBC personal loans page on October 30, 2026 (which also lists bank terms of 1 to 10 years); a bank loan prices at prime plus a margin set from your file, so those rows are a floor, not an offer. Our guides to low interest personal loans in Canada and the best personal loans in Canada cover the offers between the two ends.
Which term should you choose, from 3 to 60 months?
Lenders in the network write terms from 3 to 60 months, and the right term is the shortest one whose payment your budget clears every month; on $2000, stretching from 12 to 36 months cuts the payment from about $200 to about $90 and triples the interest. Our $2000 loan page runs the same math at every term.
Confirm two features in any offer: prepayment without penalty, so you can pay a long schedule off early, and a fixed rate, so the payment never changes.
Who qualifies for long term loans in Canada?
You qualify for long term loans at 18 or 19, the age of majority in your province, with Canadian residency, steady full-time or part-time employment income, an active Canadian bank account and valid ID; there is no minimum credit score. Larger amounts and longer terms get more scrutiny on the income side, since the lender is underwriting years of payments rather than weeks.
If your own pay is thin for the amount or term you want, a personal loan with a cosigner adds a second verified income to the file. Our guide to how personal loans work walks through the approval steps in order.
How do you apply for a long term loan?
The comparison takes about 5 minutes: one application with your income and banking details, a 60 second read-only bank check (IBV) that verifies your pay without sharing your login, then written offers that each show the payment, the term and the total cost. Accept the one that fits and the funds are deposited to your bank account, often by the next business day. Comparing offers through WizardLoans.ca is free and involves no hard credit pull; the personal loans hub lists every product the network writes.
Can you get long term loans with bad credit?
Yes, long term loans for bad credit exist, and the honest version has 3 parts. First, approval is income-first: lenders weigh steady full-time or part-time employment income, verified by the bank check, ahead of your score. Second, pricing lands toward the 35% ceiling while your file rebuilds; anyone quoting below-market rates to bad-credit borrowers is baiting. Third, no legitimate lender promises approval before reading your file.
A long term loan repaid on time is itself a rebuilding tool, because months of on-time payments are exactly what a bruised file lacks. Our $5000 loan with bad credit guide prices that case at every term, and secured vs unsecured loans explains when pledging a vehicle or savings lowers the rate.
What rules protect long term loan borrowers in every province?
Three protections frame every legal offer under the 35% APR criminal rate ceiling, per the FCAC guide to personal loans: the ceiling itself on the total cost of credit, written disclosure of the full dollar cost before you sign, and the rule that no legitimate lender charges a fee before funding.
Long term loans are available in every province and territory; the age of majority is 18 in Alberta, Saskatchewan, Manitoba, Ontario, Quebec and PEI and 19 elsewhere, and the stricter lender permit regime in Quebec narrows which lenders serve that market. On-time payments can also help your credit score, and our best installment loans in Canada comparison shows which lenders write in which provinces.
Frequently Asked Questions
What is the longest loan term I can get in Canada?
Through the lenders WizardLoans.ca compares, terms run up to 60 months on larger amounts; most long term loans of $1000 to $10000 are written at 12 to 36 months. Bank personal loans can run longer; RBC lists terms of 1 to 10 years.
Can I get a long term loan with bad credit?
Often, yes. Approval is income based, so all credit types are considered. Expect pricing toward the 35% APR ceiling while your file rebuilds, and treat any promise of approval before a lender has read your file as a scam signal.
Are long term loans more expensive than short ones?
Per month, no; in total, yes. The longer schedule shrinks each payment but collects interest over more months: $2000 over 36 months costs $1257 in interest at the ceiling against $399 over 12 months, roughly triple.
Can I pay a long term loan off early?
Usually: lenders in the network typically allow prepayment without penalty, which cuts the total interest for every month you finish ahead of schedule. Confirm the prepayment line in your written offer before signing.
What does a $10000 long term loan cost per month?
At the 35% ceiling, $10000 costs $452 a month over 36 months ($16285 repaid) or $355 a month over 60 months ($21294 repaid). At the RBC prime rate of 4.70% read October 30, 2026, the same loan would be $298 a month over 36 months; a real bank offer prices above prime.
What amounts do long term loans cover?
Lenders in the WizardLoans.ca network write $100 up to $20000. Borrow the smallest amount that solves the real problem, then pick the shortest term whose payment your budget clears comfortably.
Do I need a cosigner for a long term loan?
No. Approval rests on your own verified employment income, and most long term loans of $300 to $20000 are written without one. A cosigner with steady income helps when your own pay is thin for the amount or term, and is equally responsible for every payment.
Is a long term loan the same as a line of credit?
No. A long term loan is a fixed amount repaid in equal monthly payments with a set payoff date. A line of credit is a revolving limit you draw and repay repeatedly, usually at a variable rate tied to the prime rate.
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About Our Editorial Team
WizardLoans.ca is a comparison service, not a lender. Loan amounts of $300 to $20000; rates, terms and approval are set by licensed lenders and depend on your situation. All loans are priced at or below the 35% APR criminal rate ceiling. Example payments are illustrations; your written offer governs. Borrow only what you can afford to repay.