Is Mattress Financing in Canada a Good Idea?

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mattress finance

In Canada, you can get financing for almost anything – and mattresses are no exception. Mattresses are important for our sleep, and having the right mattress is essential to sleep quality. Unfortunately, the right mattress doesn’t always come at the “right” price which is why many Canadians turn to mattress financing.

If you want a good mattress, you’re probably going to pay for it. The good news is, if you can’t afford to pay for your mattress straight out of your wallet, you can get mattress financing.

The bad news is, there’s a lot of debate as to whether or not mattress financing is a good idea. So let’s settle this debate right here and right now. 

What is Mattress Financing?

Mattress financing is just like any other type of financing. When you get financing from a lender, they pay for the mattress up front and you pay them back for a specified period of time, usually monthly.

It works similar to that of a credit card, not only in that you are loaned the money, but also in that you will be charged an interest rate. This interest rate will be determined between you and the lender, and will often be based upon your financial situation and credit score. 

You can finance your mattress through a credit card, personal lender, or financial institution, but the most common option is to just obtain a loan from the mattress company itself.

While not true for all mattress companies, most do offer in-store financing. This benefits you because it allows you to pay off the mattress over time, and benefits them because they get your business and earn extra interest off the purchase. 

Things to Consider when selecting Financing

As mentioned before, there are lots of different ways that you can finance your mattress. You can use a credit card, finance through a personal lender or a financial institution, or finance through the mattress company themselves (if that’s something they offer).

Each financier will differ in what they offer, including their payment options, interest rates, term lengths, and more. 

Interest Rates

The most important thing to consider when selecting financing is the interest rate. Some companies will offer 0% interest rates for a specified period of time.

With that being said, these types of offers are generally only found offered by the mattress company themselves, used as a tactic to get your business.

It’s also important to note that these rates are also usually only available to those with perfect credit scores. If you don’t have good credit, you should expect to pay interest rates of 10-20% or more. 

It’s also important to remember that even if you are offered 0% interest rates, if you don’t pay the loan back by the specified dates, those rates will increase drastically. For this reason, you’ll want to make sure you pay your loan back aptly. 

Interest rates can differ drastically depending on your credit score. Generally speaking, the lower your credit score, the higher risk you are considered, and the more you should expect to pay in interest. This is true regardless of where you obtain your loan. 

Loan payments and term

The next thing you’ll want to consider is the length of your term. Mattress loans are generally paid back on a monthly basis. Many people finance their mattress for 2-5 years, but loan terms can vary greatly depending on the lender and the agreement you have with them.

But what’s important to remember here is that the longer your term conditions are, the less your monthly payments should be.

For example, someone paying $2000 for a mattress over 5 years will have smaller monthly payments for someone paying for the same mattress over 2 years.

Be sure to speak to your lender about the different options for financing terms to find the right balance for you. 

Is Mattress Financing Worth it?

The answer to this question is yes and no. If you can afford to purchase a mattress outright, that’s the best method. But if you can’t, there’s nothing wrong with financing it either. 

The main benefit of purchasing a mattress upfront is that you don’t have to worry about the monthly payments or the interest associated with them.

When you finance a mattress and pay interest each month, you end up paying more for the mattress in the long run because on top of the regular payments, you’re also paying interest. So if you can afford to pay for a mattress outright, it will save you some money.

But if paying for a mattress outright isn’t an option for you, there’s nothing wrong with mattress financing. Firstly, mattress financing can help you afford a higher quality of mattress than you would regularly be able to buy.

And as we all know, a good mattress is essential to good sleep, and good sleep is essential to good health and wellness. So that’s important!

But more than that, mattress financing can also help you build your credit. If you have low credit or no credit at all, mattress financing is a great way to build it up.

Each time you make a monthly payment on time, that goes towards building your credit score. And because mattress payments are usually relatively low, this is a great way to help build your credit score on a budget.

Of course, it’s also important to remember that mattress financing could harm your credit too. If you don’t make your monthly payments on time, this will inevitably have a harmful effect on your credit score.

So if you are going to select mattress financing, be sure that you are able to make the monthly payments and make them on time. 

You also shouldn’t be scared of mattress financing because the terms are usually very fair. Mattress financing has some of the lowest interest rates out there, starting at 0%. This is especially true if you finance in-store.

So while you will end up paying more in the long run for your mattress, it won’t be a drastic amount more. 

So in conclusion, yes, mattress financing is worth it – if you can’t afford to pay for your mattress upfront. Paying upfront is almost always the best option, but financing can help you get the mattress that you need at an affordable monthly price you can pay and it can help build your credit too!

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.