Dental Financing in Canada: How To Manage Dental Work Cost

If you urgently need money to pay for dental care, you should learn about dental financing in Canada.

Whether going for a regular dental visit or getting prepared for dental surgery, you may find an option with dental financing in Canada to cover the expense.

Usually, with the options available for dental financing in Canada, you can acquire quick funds without taking care of extensive and cumbersome paperwork.

In this blog, we'll review the top options for dental financing in Canada so you can decide what to do next.

Related Blog: Guide to Dental Expenses Tax Deductible in Canada: Can I Claim Dental Expenses on my Taxes in Ontario?

Government Loans For Dental Work 

Loans intended specifically to finance the expense of dental work, including surgery and other operations, are known as dental loans. 

As per the province, Canada offers some dental assistance programs for the residents. One such plan is Healthy Smiles Ontario, which takes care of several dental services for low-income families.

Some other programs include CDCP, OHIP, and much more. 

Why is Dental Financing in Canada Important?

According to the State of Oral Health Canada, the average annual cost of dental services in Canada was $378 per person in 2015. 

That sum can quickly soar if significant dental work is needed. The amount may become unmanageable for certain Canadian households when other family members are included.

While many Canadians are lucky enough to have employment insurance plans that cover a major part of the cost of their dental treatments, many more are forced to pay for these visits out of pocket. 

Because of this, Canadians with lower incomes typically have more oral health issues than the general population. 

Dental financing in Canada may be an option since money is undoubtedly a barrier to receiving much-needed dental care on time.

How Does Dental Financing in Canada Function?

When you apply for this kind of loan, you must specify the exact loan amount needed to cover any necessary dental work.

Usually, dental finance is not collateralized. In other words, if you are unable to make payments, the loan is not backed by any asset you own that can be seized. 

Rather, the lenders that offer these loans use information like your salary, assets, credit score, and previous financial activity.

If you are accepted, your bank account will be credited with money that you can use to pay your dentist or another dental professional. 

You must pay back the loan in full by the designated due date and make prompt installments under the agreed-upon payment plan.

Depending on the lender you choose, these plans for financing dental work may be weekly, biweekly, or monthly.

Eligibility For Dental Financing in Canada

The majority of dental financing loans in Canada will need you to fulfil the following requirements:

  • Mostly, you have to be at the legal age

  • You should have a Canadian citizenship

  • Must have an identification

  • A full-time job (to ensure that you have a regular cash inflow)

  • Fulfill the income and credit score conditions given by the lender

  • You should have a recent consumer proposal or bankruptcy on your credit record

Documents You May Need For Dental Financing in Canada 

The lenders may need the following paperwork for you to apply for dental financing in Canada:

  • Personal identification cards like a driver's license or passport

  • Evidence of income, such as pay stubs, job records, tax returns, or evidence of government benefits (like unemployment insurance)

  • Total ratio of debt to assets

  • Lists of your obligations and assets

  • Credit score

  • Give your lender permission to examine your credit

Dental Work Covered By Dental Financing in Canada

Whatever your dental needs, dental financing in Canada can assist you in paying these high costs. 

Below is a list of procedures that you can pay with dental financing in Canada:

  • Braces

  • Crowns

  • Cosmetic dentistry procedures

  • Dental cleaning work

  • Dentures

  • Dental implants

  • Fluoride-containing fillers

  • Invisalign

  • Mouthguards

  • Routine dental examinations

  • Retainers

  • Root canals

  • Tooth repair procedures 

  • Urgent dental procedures

  • Veneers

List of Dental Financing Options in Canada 

To explore your options for dental financing in Canada, here are their features and cons:

1.Personal Dental Loans

  • There are numerous specialized lenders and fintech companies offering them.

  • You can select the best deals by involving a broker.

  • Approval process is relatively easy as you can use a co-signer.

Cons

  • Does not work with all credit scores.

  • If your credit is bad, interest rates may be exorbitant.

  • Certain lenders may have stringent restrictions on income.

  • Additional costs may apply, according to the lender.

  • Certain lenders are not as trustworthy as others, particularly if it is for dental financing in Canada for bad credit.

    2.Line of Credit

These are open-ended loans that don't have a specific pay-off date. It is basically a revolving pool of money with a preset limit that you can borrow and pay interest on the amount you use later.

  • Acquire quickly

  • Unlike other loan forms, flexible credit lines usually simply need you to pay the interest as the minimum monthly payment.

  • There is no predefined payment schedule or required loan amount.

  • You only need to pay interest on the money you borrowed.

Cons 

  • You may have to deal with the lenders' strict policies.

  • Lines of credit are typically provided by traditional lenders.

  • If you have bad credit, you can expect to pay a high interest rate.

    3.Traditional Loans 

  • Again, there are numerous lenders accessible for this type of dental financing in Canada.

  • Traditional and specialized lenders, such as banks and credit card firms.

  • These are suitable for the majority of credit scores.

Cons

  • Approval may be difficult with bad credit.

  • Meeting standards such as income can be challenging.

  • Money goes directly to the dentist, so you may have to borrow more for follow-up care.

    4.In-house Dental Financing in Canada

The loan is associated with the dentist's practice, and you will either pay the dentist directly or the third-party provider.

  • Based on your relationship with the dentist, lenders may approve your loan more quickly.

  • You can ask your dentist to find a way to lower the procedure rates.

  • Most of the time, you can get zero percent or low-interest options.

  • Smooth application process.

Cons

  • You can't compare prices to find the best deal.

  • With bad credit, getting approval can be difficult.

    5.Using a Credit Card 

  • You can use a low-interest credit card (8.99 to 12.99%) to cover your expenses.

  • Qualifying for it is easy.

Cons

  • You might need one or two credit cards to cover the entire amount, depending on the total cost.

  • The majority of credit cards may have interest rates of at least 21%.

  • Applying for a low-interest credit may take a long time.

Other Alternatives to Dental Financing in Canada 

If you have a bad credit score or you are not eligible for any of the dental financing in Canada options mentioned above, consider the following:

1.Search For a Cheaper Dental Care Provider 

Depending on the dentist you select, you might be able to get the same dental treatment done at a lower cost because different dentists may have different price lists. 

If you want to save money on your dental work, consider making the short commute from city centers to a dentist who will likely offer you a better deal.

You may have to get quotes for the necessary dental work over the phone.

2.Check For Dental Financial Assistance in Your Region

Your local or provincial government may be able to provide you with some financial aid, depending on your salary and financial situation. 

For instance, Indigenous Services Canada allows the elderly, disabled, and children to receive dental work at a significant discount or for free. However, preventative care and basic dental care are typically the only things covered. 

Consequences of a Bad Credit Score

Since we have mentioned a bad credit score multiple times, let's discuss it briefly.

In Canada, funding for dental care is available even with poor credit ( a core of 300 to below 560). It is a metric used by lenders to determine the borrower's trustworthiness in repaying the loan.

However, in such a scenario, you need to pay fees and interest rates that are far higher. 

If your credit score is low, you may also need to make more effort to find a lender willing to finance you. 

There are only two ways to get a dental loan in Canada with a bad credit score. One is to cosign your loan with a friend or relative to improve your chances of acceptance. And the second option is to secure your loan with an asset.

FAQs

Do dental offices provide dental financing in Canada?

Yes, mostly those with cosmetic procedures offer financing options. The dentist or lender they work with can provide this kind of financing. Also, dental clinics like KWC Dental provide flexible financing options.

Is it difficult to obtain a personal loan for dental financing in Canada?

Dental work can be paid for with a personal loan because your creditworthiness secures it, a written contract or agreement, and doesn't need any collateral. 

Is dental financing in Canada available without interest?

Yes, there are ways to finance dental care without paying interest. Only in-house dental financing often offers zero percent interest financing. Nevertheless, you must have good credit and a good financial record to qualify.

Contact KWC Dental to Redeem Dental Financing in Canada

These were all the options for dental financing in Canada at your disposal. If you have a good credit score and meet all of the other basic eligibility criteria, you will get an easy approval.

If you want to know how you can get affordable dental care in Canada, contact us to get the answers to your queries.

Muhammad Aslam