Reference
Canadian Borrowing Costs Compared
Different credit products are priced differently for structural reasons: security, term, and how the lender is repaid. Understanding the structure explains the price better than memorising rates.
The general order, cheapest to most expensive, runs from secured long-term borrowing through unsecured instalment credit to short-term high-cost credit. Security lowers the price because it lowers the lender's loss if you default. Term matters because a longer commitment gives the lender more certainty.
Rate figures move with the Bank of Canada policy rate and with each lender's own pricing, so any table of rates ages quickly. The benchmark series are published by the Bank of Canada and are refreshed on the rates page. Structure ages much more slowly, which is why the comparison below focuses on it.
| Jurisdiction or item | Published value | Publisher | As of |
|---|---|---|---|
| Policy interest rate benchmark | Bank of Canada | 2026-09-17 | |
| Mortgage underwriting stress test | Applies to federally regulated lenders (Guideline B-20) | Office of the Superintendent of Financial Institutions | 2026-09-17 |
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Frequently asked questions
What is the cheapest way to borrow in Canada?
Generally, secured borrowing against an asset you already own, because the lender's risk is lowest. The cheapest option available to you depends on the security you can offer and your credit profile.
Why are payday loans so much more expensive?
Because they are unsecured, very short and carry no credit assessment in the usual sense. The lender replaces missing information with price.