Is Mogo the right lender for you?

By Staff Reporter - 7 August 2020

Expert Voices

There is absolutely no denying that Mogo Financial is one of the most popular personal loan companies in Canada. However, that doesn’t necessarily mean that mogo is the perfect lender for you. In this Mogo Financial review, we want to run you through everything you need to know if you’re thinking of borrowing money from this lender. Hopefully, in a short while, you will know whether to head to Mogo, or whether you’re better off looking elsewhere.

Mogo Financial Products

Mogo Financial is a Canada-based lending and financial services company. However, like most alternative lenders, you will only be able to find Mogo online. You can't head into a branch and apply in person. Absolutely everything needs to be done through their online system which, thankfully, is an incredibly simple system to use.


Mogo Financial deals with a variety of financial products. While the bulk of their business is related to personal loans, you can also apply for mortgages, cryptocurrency, and prepaid credit cards through them. They also offer a credit check facility which allows you to see your credit score through Equifax. 

Loan Products from Mogo

Here, we want to look at some of the finer aspects of Mogo loans. Think of this as a Mogo Financial review of sorts. In the following section, you’ll learn about the great things about this company and, of course, the not-so-great, as well. This should allow you to determine whether Mogo is a lender that you should work with.

Who Are Mogo Loans For?

If you are located in Quebec, you can automatically rule yourself out of being able to apply for a Mogo personal loan. Mogo doesn’t offer its services to Quebec residents. However, everywhere else in Canada should be fine.


In order to apply, you must be in employment. This can be any type of employment, but you must be able to prove the following:


  • You have been working that job for at least 30 days

  • You are earning at least $13,000 per year


This actually makes Mogo loans a little bit easier to apply for. If you look at other lenders, you will notice that many of them will not lend money to those who are in part-time employment, and often the minimum you must earn per year is a lot higher than what Mogo allows. This means that Mogo is the perfect lender for those who are working but are not necessarily earning a lot of cash.


Mogo is the perfect company for those that have an OK credit score i.e. those that may struggle to borrow from banks but are still relatively risk-free as a borrower. Mogo may not be the best lender for you if you have a fantastic credit score or an abysmal one. We’ll talk more about this in a short while.


While Mogo is known for lending money to those with below-average credit, note that this is still a company that offers the majority of their loans to people with a credit score of over 600. Anything less than that, and you have a high chance of getting rejected. Interestingly, Mogo is also one of the few lenders that will look at your credit utilization. Loans are automatically rejected for anybody with a credit utilization of over 55%.

How much can you borrow?

Mogo offers loans from $500 all the way up to $35,000. Most first-time borrowers are unlikely to be able to borrow more than a few thousand dollars, but exceptions are often made for those with great credit scores. That being said, if you are looking to borrow tens of thousands of dollars, then you may want to look into another lender first. Their interest rates will likely be a bit more affordable if your credit score is at least semi-decent.


We do enjoy the good spread of loan amounts here. It means that this is a company that will work well for those that want to borrow small sums of cash to help them out in the short term, while there are also Mogo loans for those that may wish to make a more expensive purchase e.g. a vehicle or a home renovation.

Repaying the loan

The minimum term for Mogo loans is two years. This applies even if you’re borrowing smaller sums of cash. The maximum loan term, on the other hand, is five years. Mogo, like most lenders in Canada, will not be able to give out loans for longer durations than this.


Interestingly, there are no early repayment penalties for their loans. Assuming you are able to pay off the loan quicker, it may be in your interest to do that. You’ll be able to save a lot of cash this way.


Mogo is one of the few lenders that will allow you to cancel your loan within 100 days of taking it out. If you do that, then all the fees you have paid including interest will be refunded to you.


Repayments are made automatically from your bank account each month. One point to note is that Mogo is one of the higher-charging companies if you miss a repayment. Because of this, it’s best for you to make sure that you have enough money to pay Mogo at the end of each month. Otherwise, those charges will very quickly start to add up. 

Interest rates and fees

Mogo will give you an interest rate based upon your credit score. They claim that they offer loans with an APR of as little as 5%. However, you likely will not get approved for a loan anywhere near this amount. Most people will be approved somewhere in the region of 20%, and those with poor credit scores will see rates of up to 48%.


Mogo does use a little bit of an underhanded technique with their loan quotes. They actually do have a loan origination fee added to the repayment of the loan. This is between 1% and 5%. However, they do not tell you this outright. Just bear in mind that your loan may get a little bit more expensive as a result.


If you want to learn more about the best rates in Canada, we recommend that you visit Rate Genie.

The Application Process

As we’ve said before, the application process for Mogo loans is carried out online.


It begins by browsing the Mogo Money part of their website. Here, you will tap in the amount that you wish to borrow, and how long you want to borrow it. You will then be given quotes for this type of loan. However, do bear in mind that this is not an offer of a loan. It is an encouragement to apply if any of these offers catch your attention.


If they do, then you must give Mogo permission to carry out a credit check. Once they have done that, you will be given an actual offer based upon your personal circumstances. If you have a poor credit score, then you may not receive any offers at all.


If you do accept the offer, you will need to submit supporting documents to Mogo. This includes details of your employment, income reports, identity verification, and bank account verification.


Once that has been settled, their team will take a look at your application to see whether they can offer you the money. This normally takes about two days. You may be asked to submit more information which can extend the amount of time it takes for the loan to be approved.

Receiving your funds

Mogo loans are perfect for those who want fast payments but do not necessarily want to work with a high-interest payday loan. If you have been accepted for the loan, the money will be in your account within the day. This means that from start to finish, the process is unlikely to take more than three days, assuming all of your paperwork is in order. Mogo is definitely one of the fastest lenders out there.


There are a number of advantages to working with Mogo loans:


  • Smaller income requirements in comparison to other lenders

  • Fast payouts upon loan approval

  • Free credit monitoring

  • Competitive interest rates

  • Easy application process


The major downside will be the hidden fees. They are not much, but they are there and Mogo isn’t forthcoming about their existence. 

Also, this lender might not be ideal for those with a poor credit history despite them often talking about how just about anybody can apply for Mogo loans.


If you have an OK credit history and need money quickly, then Mogo Financial is probably the right company to loan from. They have a decent number of loans available with flexible repayment terms. If you have a poor credit score (or a fantastic one -- anything that’s far from average, that is), then you might want to look elsewhere.


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