5 Payday Loans & Cash Advances in Ontario

Alternative to consider: Loan Express payday loan

5. If you are self-employed: Usolve Financial

Some payday lenders don’t accept self-employed income when you’re applying for a loan, but Usolve Financial does. This Brampton-based payday lender also offers loans 24/7, so you can apply and get funded within minutes. You also have the option to either apply online or in person at one of its 10 stores across Ontario.

How to apply online

1. Visit the Usolve Financial website and select Apply online.
2. Answer Yes when asked if you live in Ontario and specify your source of income.
3. Provide your personal information and contact details before uploading proof of ID and a selfie.
4. Submit your application.

Pros and cons

Summary of ratings and reviews

Alternative to consider: KOHO cash advance app

Are payday loans legal in Ontario?

Yes, payday loans are legal in Ontario. However, there are strict regulations in place under Ontario’s Payday Loans Act to prevent lenders from taking advantage of borrowers. These regulations set out important information such as:

• The maximum cost of a payday loan
• The maximum loan amount
• The maximum loan term
• How much the lender can charge you if you miss a payment

How much do payday loans in Ontario cost?

The maximum cost of a payday loan in Ontario is $14 for every $100 borrowed.

This might not sound all that expensive at first, but you also need to take into account the very short repayment period. Payday loans are typically designed to be repaid when you get your next paycheque, so you only have an extremely limited amount of time to repay what you borrow. As a result, payday loans have extremely high APRs—often in the triple digits.

That’s why you should only ever consider a payday loan as a last resort, and check out a range of payday loan alternatives before deciding if you should apply.

Am I eligible?

Requirements vary between lenders, but you’ll generally need to meet the following eligibility criteria to get a payday loan in Ontario:

• Be at least 18 years old
• Have a recurring income
• Have an active chequing account

Payday loan regulations in Ontario

Before taking out a payday loan in Ontario, protect yourself as a borrower by knowing your rights. Below is a summary of payday loan regulations in Ontario, but be sure to visit the Ontario government website for more details.

• Borrowing fee

  You can’t be charged more than $14 for every $100 borrowed for a payday loan in Ontario.

• Loan amount

  An Ontario lender can’t lend more than 50% of your net income, up to $1,500.

• Loan term

  The maximum payday loan term in Ontario is 62 days.

• Cancellation period

  Should you change your mind and want to cancel your payday loan, you have two business days to do so without facing a penalty. You also don’t have to provide a reason for cancelling.

• Repayment

  You can pay the full balance any time without penalty.

  If you take out three loans within a 63-day period, lenders must offer you an extended payment plan. You have the option of paying the loan back in installments.

• Loan in default

  A maximum interest rate of 2.5% per month (without compounding) can apply to the outstanding principal of a payday loan in default.

  A maximum fee of $25 can be charged for bounced cheques or pre-authorized debits (to be charged once only).

  The lender can’t contact you more than three times a week.

• Rollover loans

  Rollover loans are not allowed. This means you can’t roll over what you owe into a second payday loan, but instead have to fully repay your payday loan in Ontario before taking out another loan with the same lender.

• Other regulations

  A lender can’t provide a second payday loan until after you’ve paid off the first one.

  Ontario lenders cannot ask you to sign a form that transfers your wages directly to them.

  Lenders cannot offer or sell you any products or services in connection with the payday loan.

How do I get an instant payday loan?

Lenders that offer instant payday loans use automated systems and instant bank verification to speed up the approval process. After you apply, you typically receive a decision within a few minutes. Once you submit your contract, you also get your funding within a few minutes via Interac e-Transfer.

Below is a sample of lenders that provide instant decisions and funding.

• Cash Money (online and in-store)
• iCash (online only)
• GoDay (online only)

For a seamless application process, make sure you’re eligible for the loan first and submit all required documents. If your lender has to contact you about missing information, the process could be delayed.

What do I need to successfully borrow online?

Several lenders offer completely online payday loans in Ontario. It’s quick and easy to apply by filling out an application form on the lender’s website, while some lenders also allow you to apply through their mobile app. It’ll usually take 5–10 minutes to apply, and an increasing number of lenders support instant online bank verification to speed up the application process.

Once you’ve submitted your application and provided your contact details, you should receive a decision within minutes. You can receive your funds via Interac e-Transfer or direct deposit.

How can I tell if a payday lender in Ontario is legitimate?

The easiest way to make sure a lender is legit is to check their credentials with Consumer Protection Ontario. Look for the following signs to make sure you’re working with a reputable business.

• The lender displays an Ontario licence number. Always check that a lender is licensed by searching its business name in this registry.
• The lender doesn’t allow roll-overs or multiple loans. Ontario law doesn’t allow payday lenders to give out multiple loans. You also cannot roll over your loan, meaning you can’t add what you owe on one payday loan onto a second payday loan.
• The lender follows fee regulations. Stay away from lenders who charge more than $14 for every $100 borrowed.

Besides payday loans, where can I get financial help in Ontario?

If you find you’re frequently running short on funds and need payday loans in Ontario, it’s worth looking into the following alternatives.

Ontario assistance programs

Ontario has some programs that can help lower the costs of everyday expenses for residents and newcomers who are struggling to make ends meet.

• The Ontario Child Benefit provides low-income families with financial assistance to cover expenses like medical bills, food, rent and utility bills.
• Ontario Works can provide you with money and help you find a job during temporary financial difficulties.
• The Canadian government’s Resettlement Assistance Program provides financial assistance to refugees and protected persons for accommodations, essential clothing, household effects and living expenses.
• The Income Assistance Program provides funding to First Nations communities to help their eligible members meet basic needs, such as food, clothing and shelter.
• The Ontario Disability Support Program helps people with disabilities who are in financial need pay for living expenses, like food and housing.

Local financial institutions

Some credit unions and local banks offer less expensive small loans with longer repayment terms.

Credit counselling

If you’re struggling with your personal finances, you might want to consider enrolling in a credit counselling program. These programs can help you make a budget and manage your debts for the long term.

Bottom line

If you’re looking for a quick and easy solution to deal with a short-term financial problem, a payday loan might be just what you need. However, payday loans can be costly to repay, so if your needs are smaller or you want a more flexible option, consider using a cash advance app instead. And if you want to avoid borrowing altogether, look into alternatives like credit counselling or government assistance programs.

Frequently asked questions

• Who can I contact if I have a complaint about a payday lender in Ontario?

  You can file a complaint with Consumer Protection Ontario, who will act on your behalf if the company fails to respond to a preliminary letter of complaint. You can make a complaint by filling out an online form, emailing consumer@ontario.ca or sending your complaint by mail. Visit this page on the Consumer Protection Ontario website to learn more.

• Can you get payday loans in Ontario with no credit check?

  Yes. Some payday lenders in Ontario don't do credit checks. Examples include Wagepay, PAY2DAY and Usolve Financial.

• Where can I get bad credit payday loans in Ontario?

  You can get bad credit payday loans from most payday lenders. Payday lenders in general have lenient eligibility requirements, and many are open to low credit scores.

• Do payday loans affect my credit score?

  Most payday lenders don’t report to credit bureaus, so repaying on time usually won’t improve your credit. However, if you default and the loan is sent to collections, it can negatively impact your credit score.

• What’s the difference between a cash advance app and a payday loan?

  A cash advance app lets you access a portion of your upcoming paycheque with little to no fees, flexible repayment and no interest, making it a lower-cost option for short-term needs. A payday loan, on the other hand, is a high-cost, fixed-fee loan that must be repaid in full on your next payday. It can lead to a cycle of debt if not managed carefully.