Category guide
Asset-backed & pawn loans
An asset-backed loan is cash secured against something you own — gold, jewellery, a watch, coins or electronics. The pawnshop holds the item, no credit check applies, and you reclaim it when you repay.
What an asset-backed loan covers
A pawn loan is cash advanced against a physical item of value — gold, jewellery, diamonds, a luxury watch, coins or bullion, or electronics and tools. The pawnshop holds the item as collateral for a set redemption period. There's no credit check because the item secures the loan.
What it costs, and how redemption works
You receive a fraction of the item's resale value (the loan-to-value), plus a monthly fee or interest charge. Repay within the redemption period and you get the item back; don't, and the shop keeps and sells it. For gold specifically, the amount tracks the current gold price and purity.
How to borrow smart
Compare the fee, the loan-to-value offered and the redemption period across shops, and get more than one appraisal for higher-value gold or watches. Use the directory to compare pawnshops and gold buyers near you by rating. For gold-specific appraisals, goldnearme.ca covers the gold side in depth.