Kredit Canada
Why a loan payment is not the total cost
An instalment is the regular payment in an offer. The total amount repayable is what you pay back. Fill this seven-field worksheet from complete written terms. A smaller payment can come from a longer term and does not prove a cheaper loan.
Start with the total, not the payment
When people compare personal loans, the number that stands out is often the regular payment. That figure is an instalment: one scheduled withdrawal, not the cost of the loan.
The Financial Consumer Agency of Canada personal-loan guide describes a personal loan as a fixed amount repaid over a set period, through regular payments that include interest and any applicable fees. To understand total cost, the Agency says to multiply the payment by the number of payments in the term. Do that only after you have the complete written terms and have confirmed that required fees sit inside that payment.
Kredit Canada's $500 loan and $1,000 loan pages describe those amounts as specific requests, not as complete cost quotes, and they do not show per-payment figures. The homepage calculator and the How it works grid show a per-payment amount for each loan size, published from Kredit Canada's payment schedule. That amount is not a complete written repayment quote, because it does not state the interest rate, the number of payments, the term or the total repayable. Do not multiply it on your own: without the payment count, the result is a guess. The signed agreement sets the amount you must repay.
Five terms that get mixed together
Keep these ideas separate when you read an offer.
Instalment. The regular payment due on each date. It says how much leaves your account that day, not what the loan costs.
Repayment frequency. How often that instalment is due. Kredit Canada lists weekly, every two weeks and monthly frequencies. Frequency changes cash flow. It does not, by itself, set the term or the total.
Term and payment count. How long the loan runs, and how many instalments you make through the last due date. Two offers can show a similar payment and still differ because one lasts longer.
Fees. Charges besides interest, such as administration, optional insurance you accepted, a refused-payment charge, or an amount taken before you receive funds. Some fees sit inside the instalment. Some do not.
Total amount repayable. Principal, interest and required fees you are contracted to pay back. Compare this figure across offers. If a fee is deducted at the start, also record the net amount you receive.
A smaller payment can mean a longer, costlier loan
The same FCAC guide shows why a lower instalment can still cost more. Spread over a longer term, each payment can fall while the total of all payments rises, because interest accrues for longer.
Treat a smaller payment as a cash-flow fact, not as proof of a cheaper loan. Compare total amount repayable, payment count, and whether required fees sit inside the instalment.
If you are borrowing for a bill that cannot wait, read what to consider before taking an emergency loan before you treat a low payment as affordable.
Seven-field offer-comparison worksheet
Copy these seven fields onto paper. Complete them from one written offer at a time, not from a website payment amount, a verbal quote or an advertisement. If you compare lenders, add a column per offer. If a field is missing, leave it blank on your paper and ask for it in writing. A blank is a missing fact, not a zero.
| Field | What to record from the written offer | Why it matters |
|---|---|---|
| Amount borrowed and net received | The named principal, and the amount that actually reaches you after any up-front deduction | A fee taken at the start means you receive less than the stated loan while still repaying the larger principal |
| Instalment | The amount due on each scheduled date | This is cash flow, not cost. A smaller instalment can simply mean more payments |
| Repayment frequency | Weekly, every two weeks or monthly, as the offer states | Frequency changes how often money leaves your account. It does not, by itself, set the total |
| Payment count and term | How many payments, over what period, through the last due date | Count and term turn one instalment into a total. A longer term can shrink the payment and raise the cost |
| Interest rate | The rate, and whether it is fixed or variable for the term | Rate is one cost driver. It is not a substitute for the total amount repayable |
| Required fees | Every fee you must pay to obtain or keep the loan, including fees outside the instalment | Fees left off the instalment make that multiplication too low. Confirm they are included before you multiply |
| Total amount repayable | The complete sum the offer says you will pay back | This is the comparison figure. If the offer omits it, ask for it in writing before you sign |
Confirm fees before you multiply
FCAC's method, payment times payment count, is sound only after three checks.
- You have the complete written terms, not a headline payment.
- Required fees are included in that instalment, or listed separately so you can add them.
- You know the payment count through the final due date, not only the frequency.
What the written terms should still show you
Federally regulated banks must disclose the loan amount, the interest rate and whether it is fixed or variable, the term, the payment amount, other fees and service charges, and optional services you accepted. That list is a duty for federally regulated banks. It does not automatically govern every lender in Canada. Provincial or territorial rules may differ. Ask for the same details in writing anyway, then read them.
If an offer depends on access to your bank information, bank verification versus a credit inquiry explains what to ask before you authorize that access.
Fit the schedule to a budget
Before you accept a schedule, test it against a budget. What to consider before taking an emergency loan walks through that step. The Financial Consumer Agency of Canada's guide to making a budget treats a budget as a plan for income, spending and saving, and counts housing, food and medication as needs rather than wants.
Match due dates to income you can count on. Put the proposed payments on the same calendar as rent, groceries, utilities, transport and existing debts. The tightest pay period matters more than an average month.
What to do with a written offer
Request the complete written terms. Fill the seven fields. Compare total amount repayable, not the instalment. If a field is missing, ask for it in writing. If the payments would crowd out essentials, reduce the amount you request or wait. The $500 loan and $1,000 loan pages can help you settle on an amount to request. They do not replace the agreement.