Equipment Lease Rates in Canada

Leasing is often the fastest, most cash-efficient way to put revenue-producing assets to work. But “What’s the lease rate?” can be tricky because the rate you see and the cost you pay depend on credit, asset risk, term, fees, and the residual/buyout you choose. Here’s a clear, Canada-focused breakdown plus ways to optimize your structure.

Related guide: Average Equipment Financing Rates in Canada.

Typical equipment lease rates in Canada

For approved Canadian SMEs in 2025, effective lease costs generally land in these bands:

These are effective ranges. Some lessors quote a money factor or base rate that doesn’t show fees or residual impact. The residual (e.g., 10%, $10, or FMV) shifts principal to the end, lowering the monthly but not always the total cost—so model both.

Explore structures on Equipment Leases or compare against Equipment Loans and an Equipment Line of Credit.

What drives your lease rate

• Credit and time in business influence the base rate and required equity.
  
  
• Asset type, age, and resale strength determine risk and residual options.
  
  
• Term and residual: longer terms and higher residuals lower the monthly; check total cost and expected resale.
  
  
• Documentation quality: strong bank statements and contracts support better pricing.
  
  
• Lender channel: banks and government-backed programs can be cheaper but stricter; specialty lenders move faster and finance more scenarios.
  
  

Run scenarios instantly with the calculator.

How to lower your effective lease cost

• Use a sensible residual to trim the monthly without exceeding the asset’s end-of-term value.
  
  
• Right-size the term to its useful life; 36–72 months is common, 84 months on long-life assets.
  
  
• Blend structures: pair a lease with asset-based lending, a working capital loan, or invoice/freight factoring to keep cash flow smooth.
  
  
• Unlock equity from gear you already own with refinancing & sale-leaseback to reduce upfront cash on the new lease.
  
  
• Consider in-house options if your file is thin: In-House Financing.
  
  

Industry notes that affect rates

• Transportation & trucking: common assets with strong resale typically price well. See Transportation & Trucking.
  
  
• Construction: hours/maintenance history matter; attachments can be structured separately. See Construction & Contractors.
  
  
• Manufacturing & wholesale: heavier tickets (CNC/processing) benefit from blended term + working capital. See Manufacturing & Wholesale.
  
  

Not sure if your asset qualifies? Review Eligible Equipment. Mehmi also sells equipment directly—browse current inventory.

Are you looking for a truck? Look at our used inventory.

Case study

A Montreal contractor needed a late-model excavator plus a tiltrotator. A straight loan strained cash flow. We modeled a 60-month lease with a 10% residual in the calculator and paired a small sale-leaseback on an owned skid steer. Approval and funding timelines vary by lender, application completeness, and required conditions.

FAQ

What is a good lease rate today?
Prime files on mainstream assets often see ~7%–9% effective; most SMEs land ~9%–13% depending on credit, term, and residual.

Is leasing cheaper than a loan?
Monthly, often yes (because of the residual). Total cost depends on term, fees, and end-of-term path. Compare on loans vs leases.

How much upfront is required?
Leases usually take first/last and fees rather than a classic down payment, often ~0%–5% equivalent. See options on Equipment Leases.

Can I finance used equipment or private sales?
Yes—pricing may be higher for older/high-hour assets. Confirm fit via Eligible Equipment.

What term should I choose?
Match amortization to useful life and cash flow. Use the calculator to test 36/48/60/72-month structures and residuals.

How do I get started?
Compare options on Equipment Financing, then feel free to contact our credit analysts via Contact Us for a tailored quote.

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