Rates in USD, Bank of Canada, 2026-10-08
1 CAD = 0.7022 USD1 AUD = 0.6954 USD1 CHF = 1.2009 USD1 CNY = 0.1492 USD1 EUR = 1.1201 USD1 GBP = 1.3218 USD1 JPY = 0.0063 USDGold $4,193.70 /oz1 CAD = 0.7022 USD1 AUD = 0.6954 USD1 CHF = 1.2009 USD1 CNY = 0.1492 USD1 EUR = 1.1201 USD1 GBP = 1.3218 USD1 JPY = 0.0063 USDGold $4,193.70 /oz

What Is Collateral?

Collateral is an asset you pledge to a lender to secure a loan. If you cannot repay, the lender may take and sell the asset to recover its money.

Common examples

  • Property
  • Vehicles
  • Equipment and machinery
  • Savings or investments
  • Business inventory

Why lenders ask for it

Collateral lowers the lender's risk. That can make approval easier or allow a larger amount, depending on the lender.

The risk to you

If you default, you can lose the asset. Only pledge something you can afford to lose.

General information only, not advice. See our glossary.

Frequently asked questions

Do I always need collateral?

No. Unsecured loans do not need it, though approval then relies more on your credit and income.

Can a vehicle be used as collateral?

Many lenders accept vehicles, but it depends on the lender and the value of the asset.

Ready to take the next step?

Request a loan