If you’re short on rent this month, you may be thinking of taking out a loan. While it’s possible to get an emergency loan for rent, it’s not ideal as it could lead to a cycle of debt, especially if you only qualify for expensive short-term loans.
Before applying for loans for rent, consider your different options. In this guide, we break down the 10 ways to cover rent in an emergency, including fast rent loans and other alternatives.
If you decide that applying for rent loans is the right step for you, below are online lenders that offer quick approval and funding.
Personal loans allow you to borrow as little as $500 for almost any purpose, like covering the gap if you need money for rent. If you have good to excellent credit, you can score a low interest rate. If you bad credit, you can get a rent loan from an online lender, but be prepared for steep interest rates.
While paying interest on your rent isn’t ideal, this is a good option for borrowers experiencing temporary financial hardship, especially if you don’t qualify for local rental assistance programs.
You can easily apply for rent loans by following these steps:
An installment loan has smaller loan amounts and shorter loan terms than the average personal loan but can still be helpful if you can’t afford rent. They may also come with high interest rates, so keep an eye out for those when comparing installment loans for rent.
An installment loan has the same application process as a personal loan.
If you’re only a couple of hundred dollars or so short on the amount you need for rent, a pay advance app is a great option. These apps let you borrow around $200 typically at 0% interest, which will be repaid with your next paycheque. These services are relatively affordable, usually charging either a small monthly membership fee or an optional tip.
If you only need that little extra top up to be able to pay your rent, this is one of the most affordable options.
Instead of going into debt and taking out a loan for rent, your landlord may be willing to accept a partial payment if you can prove you’ll be able to make up the rest of your rent later in the month. Although it may feel uncomfortable to talk to your landlord about something like that, landlords are often quite willing to work with their tenants. You might also want to ask whether a modified payment plan is an option if you expect your financial hardship to last for a few months.
If they agree to accept a partial payment or adjust your contract, get it in writing to avoid any issues down the road.
Every Canadian province and territory, and many cities, offer rent subsidy programs to help low- to moderate-income individual households with short-term rental assistance for emergencies. This could cover part or all of your rent, or it could provide temporary relief from rent payments.
Visit your local housing authority or rent subsidy program in your province to go over your options and apply for aid. Click on your province or territory below to start your search for housing and rental assistance programs:
Depending on the program, you might be asked to provide some or all of the following:
Charities and faith-based organizations may offer housing assistance if you’re unable to qualify for a government voucher program or need additional aid. This can include help paying rent or temporary housing if you can’t afford rent and are facing eviction.
To find options available where you live, reach out to your local housing authority, as well as homeless ministries and charities in your area.
If you’re having trouble making ends meet and you’re looking for assistance, visit 211.ca to get connected to the right support you need. 211 is a team of real people with expertise in social services and community programs throughout Canada. Their helpline runs 24/7. Call 2-1-1, text 2-1-1 or email them. The service is free and confidential.
If you have a good relationship with your bank, you can apply to open a line of credit. You typically need a good credit score above 660 and steady employment to be approved. If you can’t get approved by a bank, online lenders can help, and they can approve you within 1 to 2 business days. However, their lines of credits usually have much higher rates than banks, so it’s important to pay off the principal as soon as possible and avoid overspending.
You might have someone in your corner willing to help cover rent. While not a long-term solution, it can help you make it through a financial rough patch without accruing late fees from multiple missed rent payments. Just clarify expectations first: determine when and how you’ll be able to repay your friend or family member to avoid straining your relationship.
You can read our full guide to getting a loan from family and friends here to get some tips on how to successfully borrow money from loved ones.
You can use your credit card to cover your rent payment if your landlord allows it. This is especially helpful if you have a card that’s still under a low interest intro period. If you pay off the balance before the promotion is up, you won’t pay interest on your rent payment.
Otherwise, if you can’t afford rent you might want to save this as a last resort, since most credit cards come with APRs that range anywhere from 16% to 29% — not to mention the credit card processing fee many landlords or management companies charge.
Although not ideal, a cash advance is typically less expensive than a short-term loan. If you have a credit card with a high-enough balance, you may be able to pay your rent with money withdrawn through a cash advance.
Just keep in mind this typically comes with a cash advance fee which is a percentage of the amount withdrawn, on top of the interest you’ll pay each month. And most credit card issuers limit the amount you can withdraw per day — typically anywhere from $100 to $1,000.
If you’ve hit dead ends with every other option listed above, emergency payday loans can help you cover rent as a last resort. You’ll need to have a steady source of income to qualify — whether that’s through a job or government benefits — but generally, payday loans are the fastest and easiest type of loan to get approved for. You can get a payday loan with poor credit because lenders focus on your income instead.
But keep in mind this is also the most expensive type of loan, with APRs in the triple digits that can make repayments difficult to afford. Only take out a payday loan when you can’t afford rent if you are certain you can pay it back in full by your next payday.
| Province | Max. cost of borrowing a $100 payday loan | Cooling off period to cancel loan | Max. penalty for returned cheque or pre-authorized debit |
|---|---|---|---|
| Alberta | $15 | 2 business days | $25 |
| British Columbia | $15 | 2 business days | $20 |
| Manitoba | $17 | 48 hours excluding Sundays and holidays | $20 |
| New Brunswick | $15 | 48 hours excluding Sundays and holidays | $20 |
| Newfoundland and Labrador | $14 | 2 business days | $20 |
| Nova Scotia | $15 | Next business day (2 days for online loans) | $40 (default penalty) |
| Ontario | $15 | 2 business days | $25 |
| Prince Edward Island | $15 | 2 business days | N/A |
| Quebec | Limit of 35% AIR | N/A | N/A |
| Saskatchewan | $17 | Next business day | $25 |
Although emergencies can feel inevitable, here are a few measures you can take to avoid needing a loan for rent in the future:
Yes, you can use a loan to help cover rent if you’re facing eviction — but you might want to reach out to a lawyer to discuss your options first. They can help you determine whether your landlord violated any of your tenant rights during the eviction process. And they might be able to help you find an alternative way to cover your rent so you don’t need to borrow.
Yes, you can get rent loans with bad credit, but be prepared to pay high interest rates. Lenders charge higher rates to people with low credit scores because of the higher risk of loan defaults.
To get approved for a rent loan, you’ll need to show the lender that you have enough income to repay your loan, even with your existing debt payments.
Yes, it’s possible to get rent loans if you’re unemployed and don’t want a credit check from certain installment and payday loan lenders. Those lenders tend to focus more on your ability to repay the loan instead of your credit score. As long as you can show some steady source of regular income, like Employment Insurance (EI) or Canada child benefit (CCB), you may be able to qualify for a rent loan.
An example of an installment loan provider that accepts unemployment income and does not do credit checks is LoansLoans.ca.
If you’re facing an emergency and find that you can’t afford rent, you might want to first look into housing assistance offered by government agencies and local charities, then start exploring loans for rent. Still short on funds? Look into more payday loan alternatives before turning to more expensive financing options like payday loans.
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