05/20/2026
Predatory financing has reached its logical endpoint: a proposed class action lawsuit.
FinanceIt is now facing allegations tied to predatory lending practices in home improvement financing. None of this should surprise anyone watching what happened after the Canada Greener Homes Loan ended.
Here's the full article: https://wattsupsolar.ca/insights/the-financeit-fiasco-part-3-when-0-financing-meets-the-courtroom
And here is the Statement of Claim filed in Ontario Superior Court:https://www.acelaw.ca/wp-content/uploads/2025/04/FinanceIt-Loans-Class-Action-Statement-of-Claim-2025-04-07.pdf
The CGHL was real 0% financing. No dealer fees, no buried interest, no inflated contract price, no games.
What desparate companies are using to replace it is not the same thing.
Solar companies can purchase promotional financing contracts that say “0%” on paper. Those contracts are not free. On a normal residential solar project, the promotional fee can land in the $5,000–$10,000+ range.
And no, the solar company is not eating that cost for you.
That means the customer has prepaid years of interest before the loan even starts. Paying it off before year 5 does not save you from that. You. Already. Paid.
Then, if the loan continues after the promotional period, the rate jumps to 13.99% on top of the already inflated financed amount. A double W for the lender.
Honestly, you might get a cleaner deal asking Tony Soprano to finance your solar system. It is getting very hard to describe this financing model without using the word “fraud.”
We've modelled the economics for you here.
A $29,868 solar system becomes a $61,138 financing obligation with a 20.1 year payback and a 3.58% IRR. Abysmal.
That is buying one solar system for the price of two.
The first 5 years look cheap on paper at $124.45/month, but then the payment more than doubles to $298.17/month at 13.99% APR for years 6 - 20.
In this model, the homeowner pays $31,270 in interest alone and this does not include the $5,000+ prepaid promotional fee.
There is no reason to rush into purchasing a solar system on these terms. There are no fleeting rebates or incentives to chase, and no, grid capacity is not limited. We have written about this as well: https://wattsupsolar.ca/insights/nsp-red-zones
Here is how a proposal with FinanceIt looks when it is honestly modelled: https://wattsupsolar.ca/quotes/71-melrose-crescent-eastern-passage-ns-b3g-1n9-canada/proposal
An investment in solar is one of the best things a home owner can do, and it is genuinely difficult to craft a scenario where solar isn't worth it for a home owner. However if a loan like this is your only option our recommendation is to pass. Don't hollow out the joy of your solar journey to enrich a fintech company in Toronto.
There are municipal programs that tell you the actual interest rate instead of dressing up double-digit financing as “0%.” Here's a full list: https://wattsupsolar.ca/solar-financing. You have options, and more may be on the way.
We are not saying “don’t buy solar.”
Choose the installer you trust. Get the system you want. But pass on the FinanceIt deal if these are the terms being offered.
A good installer should be able to explain the cash price, the financed price, and the true repayment amount without hiding behind “0%” marketing.
And if they knowingly put you into a loan like this, good luck getting eye contact when you call for support.
