The guide to dental financing, dental loans, and dental payment loans in Canada

Quick Answer

Dental financing options in Canada provide solutions for individuals encountering expensive dental treatments, including loans, payment plans, and diverse credit avenues. Despite some coverage from private insurance or public benefits, many Canadians still face out-of-pocket expenses. These financing options, accessible through specialized firms or dental offices, offer lump sums repayable over time, subject to credit qualifications. With various choices like non-traditional loans, lines of credit, traditional loans, in-house financing, and credit cards, borrowers must weigh the pros and cons carefully. Specialist lenders and traditional institutions both offer financing, highlighting the importance of thorough scrutiny of terms and conditions before committing.

Whether you are dealing with emergency dental surgery or simply looking for a cosmetic fix to your smile, dental work can get expensive. For some, private insurance will cover most dental work, including emergency dental services, while others can enjoy public benefits or even qualify for the newly announced Canadian Dental Care Plan. However, there are a lot of people who do not have either and instead are paying out of pocket for their dental care.

For those people, there is some help, and that is where dental financing comes in. Dental financing can come in multiple shapes and sizes. It can include dental loans, dental payment plans, and other traditional loans or credit options that can help absorb some of the short-term costs and allow you to pay for your dental work over the long term.

In this post, we will walk you through the dental financing options that are available to you in Canada and help you find the right solution for your specific situation.

What is dental financing?

Dental financing is a catch-all term for financial products that are specifically designed to finance dental procedures, including dental surgery and cosmetic fixes. These financial products are provided, for the most part, by specialized firms or the dentist's office itself.

Dental financing is generally not a collateralized loan, meaning the borrower will need to qualify for the loan through a mix of credit score, assets, recent financial activity, and annual income.

Once done, you will typically receive a lump sum to your account, where you can then start paying off the loan in bi-weekly or monthly payment options over a specified amount of time. In the next section, we will go into more detail about the financial vehicles you can use, whether specific to dental financing or more general options that could assist.

Options for dental financing

There are a ton of options when it comes to dental financing. Below, we will go into detail about the most common options and their advantages and disadvantages when it comes to dental financing.

One thing to note is that there is no one-size-fits-all option. It does depend on your financial situation, what offers you have available and what works for your finances. Ultimately, dental financing is a flexible option, and finding the right vehicle to cover the cost of the dental service is the goal.

Dental financing options overview:

Type	Advantages	Disadvantages
Non-traditional loans	Dozens of lenders are available Specialized lenders sometimes fintech companies Works for almost all credit scores and can use a co-signer to assist if you need some help gaining approval	Interest rates can be high if you have poor credit There can be strict requirements around income for some lenders There can be additional fees, depending on the lender Some lenders are less reputable than others, especially if you have poor credit
Line of credit	Flexible payment times, lines of credit, unlike other types of loans, will typically only require you to cover the interest charge as the minimum monthly payment with no set payment schedule or specific loan payment amount needed Paid off as you can with flexible payment options No fixed term	It can be hard to secure depending on your current credit and assets on hand Typically, lines of credit are from a traditional lender, such as your current financial institution Rates are prime plus 4 – 10 per cent
Traditional loan	Dozens of lenders are available Specialized and traditional lenders, including credit card companies and banks Works for most credit scores	Interest rates can be high if you are carrying poor or bad credit Income and other requirements can be hard to meet Lenders specializing in poor and bad credit can be predatory to borrowers
In-house dental financing (otherwise called dental payment plans)	The loan is tied to the dentist's office, and you will either pay the third-party provider or the dentist directly Lenders may be quicker to approve due to your existing relationship with your dentist You can get 0 per cent or low-interest options in most cases Some dentists allow you to negotiate down the initial price Simple application process	There is no comparison of lenders. Typically, in-house financing will be via Fairstone or another popular lender It can be challenging to get approved if you have poor credit
Credit cards	There are a lot of options, including point cards, cash back and low-interest Relatively easy to be approved Most dentists accept Visa and Mastercard	Depending on the overall cost, you may require 1 – 2 credit cards to cover the full cost Most credit cards have an interest rate of 21% or more It can be used for other expenses, which can cause a significant debt over time if not paid off

*From various sources including 7 Dental Financing Options to Pay for Dental Work - Finder and Loans and Lines of Credit - Government of Canada

Traditional lenders vs. specialist lenders

Dental financing is an area where fintech companies and other specialist lenders have flourished. Much like the auto and housing market, these specialized lenders have seen an opportunity to fill a market need and provide a decent product for borrowers.

On the other side of the table, traditional lenders have started to come around and are providing more and more financial vehicles for borrowers looking to cover dental work. Although you will not see any specific dental loans, these brick-and-mortar banks and credit unions have dental financing options through lines of credit or credit cards that offer flexible payment options and room for future spending. Borrowers should follow the same advice and review the terms of the loan carefully.

What dental services can be financed?

Dental financing can be used for any dental service. However, most people will only look for a financial tool for the more expensive procedures such as dental implants, oral surgeries, or braces. To better understand what dental services can be financed, here are some standard dental procedures and their typical out-of-pocket cost in Canada.

Dental Procedure	Avg. Cost in Canada
Braces (Invisalign)	$3,000 - $10,000
Root canal	$500+
Wisdom tooth removal	$150 - $850
Dental implants	$4,000-$7,000
Dentures	$1,100+

*Pricing based on provincial fee guides

How to choose the right financing option?

Finding the right financing option for you will come down to your personal financial situation. For most Canadians, the best dental financing option is the one with the lowest interest rate and the easiest payment options. By easy, it does not mean that it is easy to pay for it; instead, by easy payment options, we mean the loan has a flexible payment option that will allow you to pay down the dental loan quickly.

With today's interest rates and other expenses adding up, finding a low-interest dentist payment plan should be the primary goal. You are on the right path if you can find a dental financing option that is Zero per cent or somewhere close to that.

Disclaimer

As with any financial decision, knowing and understanding what you are signing up for in terms of dental financing is crucial. To help avoid issues, reading all the documentation and asking any relevant clarifying questions to the lender you are working with is advised. Your lender will lay out specific conditions you need to know and understand, especially term length, interest rates and payments.

We are not a lender and are happy to provide the above information for general information. It should not be construed as a guarantee or prediction of available financing products to you for dental work.

Frequently asked questions (FAQ)

Can you get dental financing with bad credit?

Yes, several lenders can provide dental financing with bad credit. However, these lenders will likely charge a higher interest rate than others and could have additional fees when discharging the loan.

Can you get no-interest dental financing?

Yes, there are options for no-interest dental financing. Zero per cent interest financing is generally only possible with in-house dental financing, and you will need decent credit and an excellent financial history.

Can you finance dental implants?

Yes, you can finance dental implants from reputable dental professionals. The exact cost will depend on the tooth and implant you choose.

Can you finance Invisalign?

Yes, you can finance Invisalign. Most dental clinics that offer Invisalign offer a financing option, often with zero per cent financing on approved credit. The specifics will depend on your clinic and their specific financing options.

Can you finance emergency dental services?

Yes, you can finance emergency dental services from a dental clinic in Canada. The specifics around what financing options are available will depend on where the service takes place, the specific dental clinic, and your financial situation.

*The content provided in this article, including text, graphics, and referenced material, is intended for informational purposes only and is not a substitute for professional dental advice, diagnosis, or treatment. Always consult with your dentist or another qualified oral health professional for questions regarding your dental condition. Never disregard professional dental advice or delay seeking it based on information from this article. If you believe you have a dental emergency, contact your dentist, or seek immediate assistance from an oral healthcare professional.