Worked Estimates and Checklists
Dental financing in Canada: payment plans, lines of credit and patient financing compared
How to pay for implants or major dental work in Canada: staged payments, in-office plans, third-party patient financing, lines of credit and cards, with worked monthly cost examples.
The cheapest way to pay for major dental work is usually to avoid interest altogether: pay in stages as treatment progresses, use savings, a health spending account or a second plan, and time payments for the tax credit. If you need to borrow, compare the total cost, not the monthly payment: a secured or unsecured line of credit from a bank or credit union is often cheaper than a credit card, and third-party patient financing offered through dental offices can range from promotional 0% plans to rates similar to high-interest consumer loans. Read the written credit agreement, which must disclose the cost of borrowing, before you sign.
This guide is part of the guide to reading a dental treatment estimate. Rates and amounts are illustrative, not offers.
The main ways to pay
| Method | How it works | Watch for |
|---|---|---|
| Staged payment | Pay for each stage when it is done | Deposits for lab work; refund terms |
| In-office payment plan | The office lets you pay over a few months | Whether interest or fees apply; what happens if treatment stops |
| Third-party patient financing | A finance company pays the office; you repay the lender | Rate after any promotion; fees; credit check |
| Bank or credit union line of credit | Revolving credit at a variable rate | Rate changes; discipline to repay |
| Personal instalment loan | Fixed payments over a set term | Setup fees; prepayment terms |
| Credit card | Pay the office by card | High interest if not paid off monthly |
| Health spending account | Employer-funded account for eligible expenses | Annual balance and claim deadlines |
Worked example: $6,000 implant balance
Using the dental financing calculator with illustrative rates:
| Option | Rate | Term | Monthly | Total interest |
|---|---|---|---|---|
| Line of credit | 8% | 3 years | about $188 | about $770 |
| Patient financing | 9.99% | 3 years | about $194 | about $970 |
| Patient financing | 15.99% | 3 years | about $211 | about $1,590 |
| Credit card, fixed payment | 20.99% | 3 years | about $226 | about $2,140 |
| Promotional plan | 0% | 12 months | $500 | $0 if all conditions are met |
The difference between the cheapest and the most expensive borrowed option is about $1,370 on the same $6,000.
The promotional 0% trap
Many promotional plans are genuinely interest-free if paid as agreed. Read the agreement for:
- Deferred interest: some promotions charge interest back to the start date if the balance is not paid in full by the end of the promotion.
- Conversion rate: the rate that applies after the promotional period.
- Missed payment terms: a missed payment may end the promotion early.
- Fees: setup, administration or annual fees, which count in the cost of borrowing.
Illustrative example: $6,000 at 0% for 12 months, then 26.99%. If you pay $400 a month instead of $500, you owe $1,200 at month 12. If the plan has no deferred interest, that $1,200 then accrues at 26.99%. If it has deferred interest, interest on the whole $6,000 for 12 months could be added, which at 26.99% would be over $1,000, more than doubling the remaining balance.
Consumer protections in Canada
- Cost of borrowing disclosure: lenders must give you a written disclosure of the interest rate (as an annual percentage rate) and fees. Banks fall under federal rules overseen by the Financial Consumer Agency of Canada (FCAC); other lenders fall under provincial consumer protection laws (for example the Consumer Protection Act in Ontario and the Consumer Protection Act administered by the Office de la protection du consommateur in Quebec).
- Criminal interest rate: the Criminal Code caps interest; the cap was lowered to 35% annual percentage rate effective 1 January 2025, with some exceptions. A legal rate can still be expensive.
- Prepayment: consumer loan rules in many provinces allow you to repay early; check for any penalty in the agreement.
Questions to ask before signing
- What is the annual percentage rate, and is it fixed or variable?
- What are all fees, and are they included in the APR?
- Is there deferred interest? What happens at the end of a promotion?
- Can I pay off early without penalty?
- If treatment stops or changes, what happens to the loan and to any money already paid to the office?
- Who do I contact with a complaint about the lender?
Reducing the amount you need to borrow
- Predetermination first. Know what your plan pays; see splitting an implant across two benefit years.
- Second plan. A spouse's plan may coordinate.
- Health spending account. Use its balance for the unreimbursed part.
- Tax credit. Plan for the refund; see timing dental payments for the tax credit.
- Alternatives. Compare the cost of other options in implant vs bridge vs denture cost.
FAQ
Is patient financing from the dental office cheaper than my bank?
Not necessarily. Compare the APR and fees on both. Some promotional offers are cheaper; some standard rates are higher than a line of credit.
Will applying affect my credit score?
A full application usually involves a credit check, which can show on your credit report. Ask whether a pre-approval uses a soft check.
Can I claim the interest for the tax credit?
No. Interest on money borrowed to pay medical expenses is not an eligible medical expense. The dental fees you pay are.
Who handles a complaint about a lender?
For a bank, the bank's complaint process, then its external complaints body, with FCAC overseeing. For other lenders, your provincial consumer protection office.
Sources
- Financial Consumer Agency of Canada — borrowing, credit and complaints about banks
- Justice Laws Website — Criminal Code interest rate provision
- Office de la protection du consommateur — credit contracts in Quebec
- Government of Ontario — consumer protection in Ontario
- Canada Revenue Agency — eligible medical expenses
