iPhone Financing in Canada: How to Save on Your iDevice?

Much like buying a car, many spend ample time choosing their perfect iPhone. After all, it’ll be glued to their hand for the next few years, so it might as well be up to their exquisite tastes.  But for some, iPhones are unaffordable. 

If you don’t have thousands in cash lying around, you’ll be pleased to learn about iPhone financing in Canada that will provide you with a shiny new phone regardless of your credit score. 

Shall we?

How to Finance an iPhone in Canada?

Financing Apple products in Canada is not a decision that should be taken lightly, so here’s everything in our user manual:

Personal Loan

One of the first options you can consider is getting a personal loan from banks, credit unions, or independent online lenders, especially if you’re financing an iPhone in Canada with bad credit

Thanks to the abundance of lenders who are willing to offer personal loans, anyone with any credit score can secure one, albeit with varying terms. And as you probably know, personal loans can be of help in other situations, not just when you need a phone.  

But when it comes to iPhones, the interest rates tied generally depend on your credit and monthly income. And by getting this loan, you’ll also receive more payment flexibility and longer repayment terms without being locked into a contract with a carrier

Despite personal loans aiding you on your journey towards an iPhone, mind that if you have a bad credit score, you’ll probably face higher interest rates. And if the iPhone model you’re seeking is less than $1,000, some lenders may refuse to take you on as a borrower. 

Carrier Financing 

To take away from the hassle of iPhone monthly financing in Canada, you can also look for help from your phone service provider. If your current phone plan is about to expire and you’d consider changing providers, you may qualify for a sign-up deal by buying an iPhone from the new carrier. 

Regardless of which of the Big Three (or any of the underdogs) you switch to, all of them offer similar terms. The catch here is that you’ll have to sign a 2-year contract, but since you’ll be paying for your phone for 2 years anyway, is it really a downside?  

And if you don’t want to switch carriers, ask whether you can pay the remaining balance on your current device mid-contract and upgrade to an iPhone earlier. If that’s an option, you can just walk into the store and pick up your phone that same day. 

Note that you’ll likely have to pay an activation fee when you first get your iPhone from the store, so be prepared to dip into your wallet. 

a man holding an iPhone 12 pro and a cup of coffee

Apple Canada

Is there a better way to finance than looking directly at the company that started it all?

Unfortunately, many have no idea that Apple Canada provides financing of its own. Although the latest Apple products carry a steep price tag, that doesn’t mean the iPhone is only reserved for people in the upper crust!

Apple Canada offers options to finance the latest models, older ones, and even certified refurbished iPhones. And the whole thing is facilitated by the instant approval decision, which can come coupled with 0% interest for 24 months (on purchases of at least $99) and no additional financing fees. 

And if you’re an avid Apple user who’s grown tired of your current phone, you can consider a trade-in. Namely, you can trade in your old device and receive instant credit as a discount on your new purchase.

Finally, if you secure a loan with a higher amount than you need for your device, you can use the leftover funds towards future purchases at Apple Canada. To apply, visit the official site.

Retailer Financing 

Interestingly enough, you can even find financing for Apple in Canada in retailers like Best Buy and The Source. But before you run off to the nearest retailer, understand that you’ll most likely accrue interest charges with this option. 

Namely, The Source offers financing from a third-party financing provider called PayBright, which comes with an APR from 9.95% to 19.95%. Of course, the number you land on will depend on your credit score and creditworthiness.

Luckily, however, with a store card, you might even encounter a sneaky 0% interest rate promotional period, so keep your eyes peeled.

The good thing about this option is that big box stores are a dime a dozen in Canada, so not only is it convenient, but it also eliminates the hassle of applying for financing from separate providers after your purchase. 

Credit Card

Last but not least, if you want an Apple iPhone, you can finance it with the help of your very own credit card. Essentially, you have a robust financing tool right in your wallet that you can use to buy your desired model outright without being tied to a carrier plan.

However, if you don’t already have a credit card, applying for one might even cost you more than a personal loan in the long run, as interest rates usually hover around 19.99%, much higher than the average going rate for loans. 

If you’re deadset on going the credit card route, you can opt for an affordable low-interest card with APR ranging from as low as 4.99% to 15.99%. And if you get a rewards card, you’ll both accrue points and improve your credit score with each purchase. 

But before swiping your card, make sure the price of your chosen iPhone doesn’t exceed your credit limit.  

How Much Does it Cost to Finance an iPhone?

To illustrate the costs and how it would all pan out, we’ll compare the prices of iPhone financing in Canada below. As an example, imagine you’re buying a basic iPhone 14 with 128 GB of storage:

Personal Loan Apple Canada Credit Card
iPhone Price $1,099 $1,099 $1,099
Interest Rate 8% 0% 19.99%
Term 24 months 24 months 24 months
Monthly Payment $49.70 $45.79 $55.93 
Total Amount Paid  $1,192 $1,099 $1,342

Note that carrier and retailer financing largely depends on contract terms, phone plans, promotional periods, and additional incentives. 

As you can see from the table, if you opt to finance your device with Apple Canada directly, you’d be paying 8.5% less than you would with a personal loan and 22.1% less than with a credit card.  

iPhone Financing Tips

To ensure you won’t break the bank by financing Apple products in Canada, check out some tips:

Trade in Your Old Phone

Apple has drawn in loyal customers and many Canadians have been iPhone users for years. If you’re one of them and you already have an iPhone in your hand, you should consider trading it in for a new model. To do this, make sure the old phone is in good shape so that you can score a deal.

Instead of your old phone sitting tucked away in a drawer somewhere, you can get a discount on the price of your new one or secure a 0% APR deal.

Don’t End Your Contract Early

Depending on your service provider, you might incur a penalty if you terminate your contract early in an effort to switch to a different carrier. So, if you have some time to spare, wait until your term is over and then look into changing providers. Usually, carriers will give you incentives to stay with them, so you can easily negotiate an Apple iPhone finance

Downgrade

If you’re not hell-bent on getting the newest feature-packed model, you can save a lot of money by buying an older, cheaper model. Although you won’t have access to some perks associated with the newest phones, Apple has made sure all devices abide by the same high standards and follow unique quality guidelines. 

Alternatively, you can opt for a certified refurbished model and save hundreds of dollars. 

Save on Storage Space

If you’re not a photography junkie, don’t habitually record 4K videos on your phone, and aren’t a fan of memory-eating games, 256 GB of storage can prove to be too much. So, by reducing the amount of storage that comes with your iPhone, you can effectively save a lot of money. 

You can also back up your data somewhere else, like a laptop or a USB drive with a lot of storage. In the end, it will cost you much less than getting excessive memory on your phone.   

a woman looking at a picture on an iPhone

Conclusion 

Who knew iPhone financing in Canada could be such a hot topic?

But hopefully, with all the possibilities we’ve provided, you’ll have all you need to make an informed decision and buy a new phone without plunging into debt. Just make sure you know what’s most important regarding financing options. 

FAQ

How can I buy iPhone in installments in Canada?

You can buy an iPhone in installments in a couple of ways. First, see if your carrier or favourite retailer offers plans that allow you to finance your phone for up to 2 years.

If not, Apple Canada provides deals extending over 24 months at 0% APR, where you can easily buy a new device. Lastly, you can take out a personal loan or use your credit card to fund your purchase, then repay your debt in installments over a term that suits both you and your lender.

Can I get an iPhone on finance?

Yes, you can get any Apple iPhone on finance through your carrier or chosen retailer, Apple Canada, by using a credit card with a larger credit limit, or taking out a personal loan.

Does Apple Canada provide financing?

Yes, Apple Canada provides financing for iPhones and other coveted products like the Macbook and the iPad. And not only that, Apple Canada offers a 0% APR on your financing and enables you to pay for your purchase in 24 installments.

What is the best way to finance an iPhone?

We’ll refrain from answering outright because the best option depends on you and your financial capabilities. Each of the financing possibilities comes with a slew of benefits and some drawbacks. Ultimately, you should choose whatever works best for you. All we can do is provide the tools to help you make that decision.

ABOUT AUTHOR

When Angela combined her deep-seated love for linguistics with her growing interest for finance and money management, she struck a gold mine. She’s scoured the internet far and wide for all things related to money and finances, including payments, budgeting and investing. Now she’s eager to share her knowledge and skills with the world, determined to make it a better place. In her free time, she loves to read a good book.

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