Applying for payday loans Toronto isn’t as complicated as it sounds. With the options available, having instant money is easier than ever.

Someone who deals with a financial emergency find themselves in need of quick cash. This is where payday loans come in—to help them get the needed funds before their next paycheck.

We made this article to help you understand how a payday loan works. We’ll try to provide as much information, too, in case you’re planning to have payday loans Toronto yourself.

Can I Get Payday Loans Toronto?

Yes. Short-term loans are legal here in Toronto. There’s actually an act, the Payday Loans Act 2018, to protect you if you take out a payday loan.

Pricing varies depending on your province. For example, the maximum money you can borrow in payday loans Toronto is $1,500 with a maximum interest of $15 per $100.

Additionally, you can’t apply for a loan that is 50% more than your net monthly pay.

Generally, the loans need to be paid within a short period (usually 2 to 3 weeks) and you can’t apply for a new loan unless the first one is paid off. Lenders should also give an extended payment plan if you apply for three loans within 63 days.

Consider any charges, fees, and rates you may be charged when comparing short-term loans. If you need financial advice, you can call the Credit Counselling Canada at 1800 007 007.

It offers free financial counseling and is open Mondays to Fridays from 8 am to 5 pm.

What Fees Do Payday Loans Toronto Charge?

Toronto has laws to protect you from predatory lending. However, as we said, there’s still a $15 charge for every $100 you borrow.

If you don’t want to pay this fee, you should cancel the payday loans Toronto contract within two business days. This table shows you the fees you’ll pay for a credit card versus a payday loan:

2-week Loan Amount Credit Card (23%) Payday Loans
$300 $6.15 $45
$600 $12.29 $90
$900 $18.44 $135
$1,200 $24.59 $180
$1,500 $30.74 $225


Can I Get a No Credit Check Loan for Payday Loans Toronto?

You can—but we suggest not to. No credit check loans often come with higher rates and can make it hard for you to find a legit lender.

That’s why we advise looking for a short-term lender that does a soft credit check, which won’t affect your credit score.

After all, a soft credit check only takes a minute so it won’t make your application longer.

And, lenders will work with you despite poor or bad-credit, so you won’t necessarily be denied. You may even qualify for more competitive rates by doing it.

What Should I Remember Before Applying for Payday Loans Toronto?

If you’re eager to get a payday loan, make sure to borrow only as much as you can repay and to budget your repayments accordingly.

Skipping on your repayments can leave a negative mark on your credit score which can last for up to six years. Smart budgeting is key, and make sure to use a licensed lender.

How to Tell if a Payday Loans Toronto Lender is Legit

Besides the restrictions on how much you can borrow, fees, and interest, Toronto also dictates how a lender must act in certain situations. Here are signs your lender is legit:

The Payday Loans Toronto Lender Has a License Number

Make sure your lender is licensed. Some companies pretend to be online payday lenders but are only taking your personal information to sell to actual lenders.

The Payday Loans Toronto Lender Doesn’t Allow Multiple Loans or Rollovers

Current law doesn’t allow lenders to offer multiple loans.

The Payday Loans Toronto Lender Gives a Contract in a Language You Both Speak In

Meaning, the contract should be in English if you both communicate in English. If you both talk in French, the contract must be in French.

The Payday Loans Toronto Lender Follows Rules and Regulations

It’s a red flag if your lender charges more than $15 for every $100 loan.

How Do I File a Complaint Against a Payday Loans Toronto Lender?

Let’s say your lender violates one of the signs above.

First, you can send a letter of complaint to the business. If they don’t respond, you can contact the Consumer Protection Ontario who’ll then contact the lender on your behalf.

Once they find that your lender breached the law, they can take legal action against the lender.

Consumer Protection Ontario may slap them with penalties or revoke their license. If the lender faces several complaints, CPO can file a civil action to get a settlement for the customers.

How Can I Apply for Payday Loans Toronto?

You must meet/have these eligibility criteria to apply for a payday loan in Toronto:

  • you’re at least 18 years old
  • proof of 3-month continuous employment
  • proof of address (e.g. utility bills, etc.)
  • an active checking account

For your application to be successful, be prepared to submit these basic information:

  • personal details (your name, date of birth, a valid ID, and Security Insurance Number)
  • contact details (your house and email address, and telephone number)
  • details about your income and employment