Finding The Best Payday Loans in Ontario

When looking for payday loans lenders, it is key to find the best one in town. These types of short-term loans are easy to apply for, however, they tend to charge jacked up interest rates. Furthermore, transacting with a lender that you do not trust, may affect the entire application. Having no idea what is happening may put you in a position where these wise lenders can take advantage of you. These are the reasons why prior knowledge about payday loans in Ontario, or any kind of loans at that, must be promoted, especially by reputable lenders.

If this is the reason why you are here, then you are in luck as we are going to share with you the basic information everyone must know about payday loans. We will also give you tips on how you will be able to find the best payday loan lender in Ontario, Canada.

Payday Loans

Payday Loans in Ontario 

Payday loans in Ontario follow policies that the provincial government has implemented to protect its citizens. Short-term loans like payday loans make borrowers prone to the debt cycle. This is why it is important to gather knowledge about these first before applying. 

Payday loans are a good option for people who do not or have not established a good credit score that will allow them to apply for traditional loans. These are often short-term loans which means they should be repaid in just a span of weeks or months. Failure to do so increases the charges that you are credited to. For payday loans, repayment must be made on or before your next salary comes in. Since your credit score is not required, you have to prove that you have the capability to pay the loan back by proving that you have a stable source of salary. You must also be at least 18 years old and own a checking account.

How to find the best payday lenders in Ontario 

  • Do prior research on Ontario’s policies on payday loans.

Each province has its own implemented guidelines for payday loans which include Ontario. These policies must be followed by both borrower and lender. Researching and learning about these will help you know your rights and responsibilities when applying for payday loans in Ontario and avoid any type of frauds. 

  • Ask your closest friends for recommendations.

If you have no idea where to start, asking some of your friends will help you. At least one of them will know some loans as well as lenders that offer them. If they experience dealing with payday lenders, you can ask them for recommendations and what their experience was like. They can even tell if payday loans are worth it. Testimonials from people you know are always good to rely on.

  • Research online on the best payday loan lenders in Ontario.

The internet will be of great help if you still have nothing. Most payday lenders offer an online application, so it is most likely that the best and reputable ones have websites. Search for payday lenders that are set in Ontario. Look into their services and how they work.

  • Look for testimonials.

Most websites have a section for testimonials from past clients. They allow them to write reviews regarding their experience and the quality of service of the lenders. Read through those to have an idea if they are credible or not.

  • Always verify lenders’ licenses.

It is important to transact lenders with licenses — never trust someone who is not licensed. Call your provincial and territorial consumer affairs offices and ask them if the lender you are looking into is licensed. 

  • Contact your potential lenders.

Always communicate with multiple lenders before you settle on one. Consult them one by one and interview them. Ask the right questions. The best lender will ask every question in a way that you would understand it. You can also ask for advice from them on what they think the best that you should do. A great lender will always put first what he or she thinks is the best decision regarding your financial crisis.

  • Trust your instincts when choosing.

At the end of the day, you have the final decision on who is the lender you are going to choose. Always remember to consider the costs on each lender as well as the quality of service they provide. You have to choose the one you are comfortable transacting with and will guide you through the entire process.

What you need to know about payday loan interest rates in Ontario

Just like with any provinces in Canada, Ontario has its policies when it comes to payday loans. This is to protect its citizens from being taken advantage of reckless and exploitative lenders. They have also implemented the Payday Loans Act of 2008. This act gives rights to borrowers and states their responsibilities. It also contains the rules all payday lenders must abide.

In Ontario, all payday lenders are not allowed to charge fees or interests more than $15 per $100 to avoid overcharging. You are also allowed to cancel your loan within two days of application even without a valid reason and the lender should not charge you a penalty. Furthermore, it is the lender’s responsibility to provide a well-written contract as well as accept nor demand payment by direct deduction from your checking account.

It is against the law for a lender to intimidate you or contact your family in a case that you are not able to pay your loan on time. You should also know that you are not allowed to loan more than 50% of your salary — a reputable lender must also know this. Even though you have no idea about all of these, a good and trustworthy lender will explain everything and will never go against the Payday Loan Act of 2008 nor are you allowed to insist. 


Payday loans are the most convenient type of loan especially for those who are looking for a source of quick cash. However, due to high-interest rates, it can easily put you in a debt cycle once you have not handled it responsibly. Make sure to follow policies as well as repay the loan on time. With the right lender, you will not struggle for sure, so, you should take your time in finding one. You will then realize during your application that knowing your rights and responsibilities is worth it. Either payday loans or traditional loans, all of these involve your financial stability, one wrong mistake will take you down the drain. Always exercise caution and keep learning about these things.

Jay Vats is an Engineering major who loves to talk about Future Technology, Sustainable Energy, and Environment. When not working, you can find Jay reading books about Robotics and Artificial Intelligence.