Loan Comparison Calculator Canada — Tax Year 2025
Compare two loan offers side by side to find which one costs less. For Canada. Uses current Tax Year 2025 data.
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Common questions — Canada
What factors matter beyond the interest rate?
Processing fee (adds to effective cost), prepayment penalty (limits your flexibility), floating vs fixed rate (rate certainty vs potential future savings), and customer service quality.
How do I convert a flat rate to a reducing balance rate?
Some lenders (common in personal and vehicle loans) quote "flat rates" which are deceptive. A flat rate of 5% is roughly equivalent to a reducing balance rate of 9%–10%. Always ask for the effective APR on a reducing balance basis.
Should I go with my existing bank or a new lender?
Your existing bank often knows your financial history and may approve faster. New lenders may offer better rates. Get both quotes. If a new lender is 0.5%+ cheaper, it's usually worth the paperwork.
Does the loan amount affect which offer is better?
Yes. Processing fees are usually a percentage of the loan amount, so they matter more for larger loans. For small loans, a fixed processing fee matters more than a marginal rate difference.
What is APR and why is it more useful than the interest rate?
APR (Annual Percentage Rate) includes the interest rate plus all fees, expressed as an annualised percentage. It's the true cost of the loan and allows fair comparison between lenders who structure fees differently.