Stephen Lobo was born in Toronto, Ontario in 1973. His father is a Goan electrician who emigrated to Canada from Tanga, Tanzania. His mother, who is of Iranian descent, is a nurse. Lobo attended the University of Toronto where he studied environmental science. At age 27, he began taking acting classes and moved to London where he earned a three-year degree in drama at Drama Centre London. He appeared in several plays while in England, including The Seagull and Paradise Lost.