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Payday loans in Toronto are common, and there are many lenders both online and offline that offer instant payday loans. However, you should be cautious with Toronto payday loans – they can come with high rates, and for this reason may not be as cost-effective as some other short term cash options, such as a cash advance, installment loan, or an emergency loan.
If you are looking for payday loans in Toronto though, it’s important you get one from a reputable lender. You can find one in the table below; this list shows both online lenders and lenders with physical locations. This list also shows lenders who can provide fast, short term loans to people who might not pass a credit check – thereby offering a great alternative to a payday loan.
Click on a lender to see their full profile, loan details and to find their online application. You can also apply right here with Smarter Loans, and we will connect you to the lender that best suits your needs.
A payday loan is an unsecured, short term loan available to retail consumers, and it works just like most other loans. You complete a loan application, and if this is approved, you receive a sum of money. You may use this money as you wish.
You then have to repay the loan, plus interest and fees, according to the repayment plan in the contract. Most payday loans must be repaid when the borrower receives his/her next payday.
Chart showing reasons people get a payday loan. People like payday loans as it is easier to get approved than when applying to other financial institutions.
Getting payday loans in Toronto is simple. Eligibility rules state that applicants must:
And that’s it! No credit check is required; neither is any form of collateral. As long as you can show the above, you are likely to receive approval for a payday loan.
The income needed for a payday loan does not have to be employment income; any form of regular income counts, including benefits, tax rebates, pensions, royalties, and so on. The key is that you’ll be able to repay the money you borrowed.
This is one reason that payday loans are sometimes known by other names, such as a “child tax loan”.
Toronto residents enjoy some of Canada’s lowest payday loan rates. This is because the maximum allowable cost when getting a payday loan is not controlled by lenders, but by the provincial government. This maximum is set to $15 per $100 borrowed. The cost is expressed in this way rather than as an interest rate because most payday loans are intended to be repaid in one lump sum from your next paycheck, so their cost is advertised as a ‘flat fee’.
However, you should know that this is the cost only if you pay back the cash on time, and does not account for other fees or interest that will increase if you fail to repay. The total cost of a Toronto payday loan may therefore be much higher.
Chart showing distribution of borrowing amounts. Most people borrow under $500.
The amount Toronto residents can access with a payday loan is smaller than with other types of personal loan. The maximum borrowing amount is set by the financial regulator, and in Toronto is $1,500.
You cannot increase a payday loan amount. This is because there are rules that state customers can only take out one loan at a time from each lender. You must therefore repay all of the money you borrow before you can access extra funds.
A Toronto payday loan application does not require much paperwork. You’ll just need to provide:
If using an online payday loan application, you will need to have high quality images or scans of these items.
Table showing the share of the payday market covered by the top three lenders.
Payday loans are available at retail stores in convenient locations across Toronto, as well as online. You won’t be able to get a payday loan from your regular bank. This form of instant loan is provided by non-bank institutions that must be registered with the Financial Consumer Agency of Canada.
There is no need to go anywhere to get a quick cash loan in Toronto; online payday loans are readily available from a wide range of online lenders, under the same terms as store-bought payday loans.
Very fast. Most lenders (whether you apply online or in person) will provide an almost instantaneous turnaround time. This means you can apply in just a few clicks, be approved instantly, and receive your funds into your bank account in just moments. The entire process can take as little as a few minutes.
Their speed is one of the primary attractions of payday loans. They can easily act as an emergency loan to help those in a tricky or unexpected financial situation.
Chart showing distribution of payday loan market. Most people still choose to borrow money in person rather than get an online payday loan..
Online payday loans are essentially the same instruments as in-store payday loans. And because so many people want convenience, the majority of lenders now offer an online application form; once submitted, you can receive an almost instant decision on your online payday loan application, and if approved have funds deposited directly into your bank account or sent via Interac e-transfer.
So online payday loans are extremely accessible and those in the Toronto area can get funds fast, without having to go anywhere. But physical locations for most instant cash lenders are present throughout Toronto as well, with most open outside of regular business hours.
The security of your personal information online will depend more on your personal set up than the online payday loan provider’s security, any reputable online lender in Canada will have robust security protocols. You should verify the trustworthiness of a lender before you apply online for an online payday loan. If you’re at all worried about sharing personal information online, why not go to a nearby payday loan store instead?
Unlike with other loans, a credit check is not necessary when you apply for a payday loan; the only really important factor is income. This means payday loans are a great option for those with a bad credit history, or who wish to avoid credit checks for any reason.
It’s important to realize though that payday loans are not suitable as a means to rebuild your credit. This is because most lenders do not report payments to credit bureaus, so positive payment history will not be taken into account in your credit score.
Chart showing payday loan uses. The majority of users want money to cover unexpected payments.
Due to their structure, instant loans are best suited to provide cash for financial emergencies or unexpected expenses. Their size and interest rate makes them less suitable for long-term borrowing or large amounts of money.
This doesn’t mean those accessing a payday loan are restricted in how they can use their funds; on the contrary, online payday loans and regular payday loans can be used for any purpose, including:
Once your loan application has been approved, your entire loan amount will be automatically deposited into your checking account, or sent to you via Interac e-transfer. This is one of the ways in which a payday loan is so convenient: there is no need to worry about accessing the funds or how long it’ll take to clear via a cheque or other payment method. Hassle free, quick cash is available, fast, in a very easy process.
That depends on the loan agreement you signed. Most who borrow money via easy payday loans do so with the intention of paying the money back within a few weeks.
If you extend your borrowing beyond your next payday, you may end up paying much more money for your loan. This is why these instruments should be considered as short term loans only; if you need more time to repay, you may be better considering other lenders or ways to access quick funds.
If you are a Toronto resident and are denied a payday loan, it’s probably because you already owe money to that lender. Try applying through another lender, or finding an online payday loan.
Or, work on paying off your outstanding debts and building your credit with services such as credit counselling or a debt management program, so you can more easily access quick loans in the future.
No. While you need to be able to prove your income when applying for a payday loan, your employer does not need to know about the loan, and the lender should in no circumstances inform your employer.
It’s also worth noting that it is illegal for lenders to take payment in the form of automated paycheck deductions.
Graph showing number of payday lenders in different regions in Ontario. Whether you’re in St Lawrence Market or on the Toronto Islands, there are options for you.
With so many options to choose from, picking the right lender can seem tough. This is especially true if you are looking at payday loans online.
To find an online payday loan that works for you, first check whether a lender offers an online payday loan application. You should know that many lenders use the terms “cash advance” and “no credit check loan” to describe these same products.
Then check whether the lender is transparent about their fees. Do they encourage borrowing responsibly? What do they charge for access to quick cash?
Then finally ask: what are their reviews like? What do other people getting their cash from this type of payday loan online say? And are their customer reviews from locally, or elsewhere, such as British Columbia?
Finding the right payday loan online is not just about cost – you also need to take into account whether local customer service is available.
Table showing regulation variations by province.
Each province has its own regulations regarding payday loans; for example, British Columbia has the same cost of borrowing cost cap as Ontario, but lower penalties. In Nova Scotia it costs more to access fast cash. Use the table above to see the differences between provinces.
Chart showing the cost of borrowing for different loan types. Getting approved for a payday loan is one reason they are so popular despite their expense.
A major reason many turn to online payday loans Toronto is that they are unable to access cash by any other means; 65% of payday loan borrowers in Canada do not have access to a credit card.
But if this is you, you should know that there are many financing options available to those who have been turned away by a bank or credit union. These include:
Payday lenders in Canada are regulated and have to comply with specific requirements in order to operate. These requirements state that those who offer payday loans in Toronto – including those who offer online payday loans – must:
There are also mandated borrower rights, including:
In addition, the Payday Loan Act puts restrictions on a lender’s behaviour if a customer fails to repay their borrowed funds. Lenders cannot:
Chart showing that some illegal behaviour still occurs.
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