How to Pay for Surgery Without Draining Your Savings

Canadians pay for surgery through some mix of provincial coverage, private insurance, clinic payment plans, medical financing, personal loans, credit cards, home equity, and the medical expense tax credit. The right combination depends on the procedure, what your coverage pays, and how much you need to borrow.

The first question is whether you need to pay at all. OHIP covers medically necessary surgery in Ontario, including procedures people often assume they'd have to fund themselves, like knee replacement and, for eligible patients, bariatric surgery. The bills land on cosmetic procedures, dental work, vision correction, and on people who choose to pay privately to skip a public wait list.

P.S. If you're an Ontario homeowner facing a five-figure surgical bill, Lotly's secured home loans let you access funds from your existing home equity, with all credit scores and income types welcome. See if you qualify.

What does OHIP cover, and what do you pay for?

OHIP covers medically necessary surgery performed in an Ontario hospital or approved clinic, along with the pre-operative assessments and in-hospital post-operative care that go with it. The Ontario government's coverage page lists what's insured.

A few procedures get misfiled as out-of-pocket. Knee and hip replacements are covered when medically necessary, typically for severe arthritis or joint damage. Bariatric surgery is covered for patients who meet the Ontario Bariatric Network's clinical criteria, though OHIP funds only specific procedures, mainly gastric bypass and sleeve. The catch with both is the wait, which for bariatric surgery can run two to five years.

That wait is why people pay privately. Here's the legal wrinkle: under Ontario's Commitment to the Future of Medicare Act, physicians can't accept private payment from Ontario residents for OHIP-insured services. Paying privately for a covered procedure like a knee replacement generally means travelling out of province. Private bariatric clinics do operate in Ontario, largely for patients who fall outside OHIP's criteria or want a procedure OHIP doesn't fund.

What OHIP doesn't cover at all: cosmetic surgery done only to change appearance, most dental work, laser eye surgery, and procedures performed outside public hospitals or government-contracted clinics.

Costs vary by provider, location, and case. Private orthopedic pricing reflects Canadian private-pay ranges as of mid-2026.

The surgeon's quote is rarely the full number. Pre-op tests and consultations, anesthesia, post-op medications, compression garments, follow-up visits, and income lost during recovery typically add 15 to 30% on top.

What are your options for paying for surgery?

Seven routes, roughly from simplest to most involved. Most people end up combining two or three.

Savings or an emergency fund

Paying cash eliminates interest entirely. The cost is the cushion: draining savings for a $12,000 procedure leaves nothing for a car repair, a job disruption, or a second medical need during recovery. Savings work best for procedures under about $5,000, or as the deposit and ancillary-cost portion of a larger bill while you finance the rest.

Private insurance

Plenty of Canadians assume a procedure isn't covered and never ask. Employer and private plans vary widely, and some cover part of dental surgery, vision correction, reconstructive work, or post-op prescriptions even when the main procedure isn't funded.

Call your insurer before booking and ask for a predetermination letter. Ask about each component separately, because anesthesia, lab work, and medications are sometimes covered when the procedure itself isn't. Annual maximums and deductibles will cut into what you actually get back.

A clinic payment plan

Many surgical clinics, especially for elective procedures, run in-house payment plans that are often interest-free if paid within 6 to 12 months. Most want a 10 to 30% deposit upfront. Ask about the installment structure, administrative fees, and whether the clinic works with a financing partner offering promotional rates.

Medical financing companies

Medicard and Beautifi offer financing built for healthcare costs in Canada, and Beautifi is common at cosmetic clinics. Approval depends on your credit score.

Promotional 0% periods deserve a careful read. On some plans, missing the payoff deadline means interest gets charged on the original amount, not just what's left. Check the agreement for deferred interest terms, and compare the total financed cost against your other options before signing.

A personal loan or line of credit

A personal loan gives you a fixed rate and term, which makes budgeting predictable. A line of credit is more flexible: you draw what you need and pay interest only on what you use. Both carry higher rates than secured borrowing and usually require strong credit and documented income, which is where self-employed people and gig workers tend to get stuck. Lotly's breakdown of HELOCs versus personal loans compares the two in more detail.

A credit card

Credit card rates in Canada typically sit above 20%. Put $10,000 of surgery on a card and pay the minimum, and you'll spend years and thousands of dollars in interest to pay it off. A card makes sense for smaller ancillary costs, things like medications, compression garments, or travel, that you can pay off within the grace period. Anything over about $3,000 needs a cheaper vehicle.

A secured home loan

For Ontario homeowners with equity, a secured home loan can cover even a private orthopedic or bariatric procedure in one lump sum with a single monthly payment. Because the loan is secured against your property, the rate is typically lower than a personal loan or credit card. Lotly lends $10,000 to $1,000,000, accepts all credit scores and income types, and funds in about two weeks, which matters when a surgery date is already set.

What should you do if insurance says no?

Appeal first. Denials are often overturned when the surgeon submits a letter of medical necessity explaining why the procedure is clinically required. Many surgical offices have a template and have done this before.

Then ask for an itemized quote. Anesthesia, lab work, and prescriptions may still be covered even if the procedure isn't. Check whether the procedure qualifies for the medical expense tax credit, since many procedures insurers decline still do. Also consider splitting the cost: use savings for the deposit, a loan for the bulk, and any partial insurance reimbursement for post-op medications.

How do you plan for elective surgery?

Elective means the timing is at least partly yours, which is an advantage. Cosmetic procedures, dental implants, LASIK, and fertility treatment are rarely publicly funded, but you can build the funding before you book instead of scrambling afterward.

Get a written quote covering the procedure, anesthesia, facility fee, and post-op care. Subtract any insurance reimbursement and the savings you're willing to use, and the remainder is your real funding gap. Ask the clinic about seasonal promotions or financing windows. Then arrange financing before booking the surgery, so the money is settled before the date is.

Can you claim surgery costs on your taxes?

Yes, for many procedures. The medical expense tax credit lets you claim eligible expenses above the lesser of 3% of your net income or a fixed threshold, roughly $2,800 to $2,900 for 2026. The threshold is indexed annually, so confirm the current figure with the CRA. The federal credit is now calculated at 14%, down from 15%, following the cut to the lowest personal tax rate.

Surgical costs clear that threshold easily. Eligible expenses can include surgeon and anesthesia fees, hospital charges, prescription medications, medical devices, and transportation costs if you travel at least 40 km for care that isn't available closer to home.

Laser eye surgery, dental implants and oral surgery, and medically necessary procedures not covered by OHIP generally qualify. Purely cosmetic procedures don't, unless they're reconstructive, such as breast reconstruction after a mastectomy. Non-prescription items usually don't qualify either.

If both spouses have medical expenses, claiming them on the lower-income spouse's return usually produces a larger credit, because 3% of a smaller income is a lower bar. Once the refund comes in, tracking your Canada RIT deposit tells you when the money lands, and applying it to a surgery loan lowers your net financing cost.

Which payment option fits your situation?

If you've been declined and want to understand what lenders weigh, Lotly's guide to Canadian credit scores explains it.

Is it cheaper to wait and save up?

Not always. For conditions that worsen, waiting while you build cash can cost more than borrowing now. A dental problem that costs $4,000 to fix today can turn into $12,000 of reconstructive work two years later. A knee managed with medication, physio, and reduced working capacity for 18 months can cost more in total than financing the procedure at a reasonable rate.

Before deciding to wait, add up the costs of the delay: extra prescriptions, specialist visits, lost productivity, and the risk that the underlying condition becomes harder and pricier to treat.

How can Lotly help you pay for surgery?

For Ontario homeowners with equity, a secured home loan is often the lowest-cost way to cover a procedure over $10,000, and approval doesn't hinge on a credit score. Lotly lends $10,000 to $1,000,000, accepts all credit scores and income types, including self-employed and gig income, and funds in about two weeks.

Three things to take away:

• Check what OHIP covers before you budget anything. Knee and hip replacements and, for eligible patients, bariatric surgery are publicly funded. You pay only if the procedure isn't insured or you choose to skip the wait; for insured procedures, that usually means going out of province.
• Price the whole procedure, then subtract every coverage layer. Anesthesia, post-op care, medications, and lost income add 15 to 30% to the quote. Private insurance, employer health spending accounts, and the medical expense tax credit each take a piece back before you borrow.
• Pair the loan with your tax credit. Fund the procedure with a secured home loan, claim the eligible portion on your return, and put the refund against the balance. You get the surgery on your timeline, keep your savings intact, and lower what the financing actually costs you.

Start your application to see what your home equity can cover.

Frequently asked questions

Can I get a loan specifically for surgery in Canada? Yes. Medicard and Beautifi offer procedure-specific financing. You can also use a personal loan, a line of credit, or, as a homeowner, a secured home loan, which typically offers a larger amount at a lower rate.

Does OHIP cover knee replacement or bariatric surgery? OHIP covers knee and hip replacements when medically necessary. Bariatric surgery is covered for patients who meet the Ontario Bariatric Network's clinical criteria. Wait times are the main reason people pay privately.

Can I pay privately for an OHIP-covered surgery in Ontario? Ontario physicians can't accept private payment from Ontario residents for OHIP-insured services. Patients who want to skip the wait for a covered procedure generally travel out of province, and OHIP won't reimburse that private cost.

How do I pay for surgery my insurance won't cover? Appeal the denial with a letter of medical necessity from your surgeon. If that fails, look at clinic payment plans, medical financing, a personal loan, or a secured home loan, and check whether the procedure qualifies for the medical expense tax credit.

Is surgery tax deductible in Canada? Many surgical expenses qualify for the medical expense tax credit, including laser eye surgery, dental implants, and medically necessary procedures. Purely cosmetic procedures generally don't, unless they're reconstructive.

Can I pay for surgery with bad credit? Yes, though traditional lenders may decline you. Some clinics offer in-house plans regardless of credit, and Lotly's secured home loans accept all credit scores because approval is based on your equity. Lotly's guide to loans for bad credit covers other options.

How long does surgery financing take? Medical financing companies can approve within days. Clinic payment plans are often set up at your consultation. A Lotly secured home loan typically funds in about two weeks.

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