Instalment loans in Canada: read the schedule before the payment

Monthly, twice-monthly and every-two-week schedules are not interchangeable. A monthly schedule has 12 payments in a year; twice-monthly has 24; every two weeks usually has 26. Read the actual dates in the agreement. Do not multiply a biweekly payment by two and assume that is a full average monthly cost.

Illustrative example: 26 payments of $120 total $3,120 over a year. That averages $260 a month, not $240. This example has no advertised loan amount or rate; it explains the schedule arithmetic only. To compare a real offer, also identify what you receive, any separate costs and whether payments change.

FCAC notes that personal-loan agreements can differ on early repayment. Ask for the payout process, possible fees and what happens after a failed payment. Optional insurance or other products should be identifiable in the quote, not a mystery inside the total. Keep a copy of the version you actually accept.

Write down how the funds would be used and whether the expense is one-off. If the goal is consolidation, verify which accounts would be paid and what happens to their future use. If the goal is covering an ongoing deficit, discuss repayment support before turning the deficit into another scheduled debit.