In Toronto, payday lenders need both an Ontario licence and, for storefronts, a City of Toronto business licence. They can charge at most $14 per $100, can't lend more than half your net pay, and must let you cancel within two business days. A $600 loan costs $84.
Last reviewed November 7, 2026
Payday loan rules are set by each province and can change. Figures on this page were last checked on November 7, 2026 against Ministry of Public and Business Service Delivery and Procurement (Consumer Protection Ontario). Always confirm with the lender’s contract and your regulator.
Licence verified AB, BC, MB, NB, NL, NS, ON, SK
Applications go through our partner Loans Canada, which may match you with this or other lenders. Koke may be paid for referrals. Lenders decide approval, cost and terms.
Licensed per lender AB, BC, MB, NS, ON, SK Confirm with regulator
Applications go through our partner Loans Canada, which may match you with this or other lenders. Koke may be paid for referrals. Lenders decide approval, cost and terms.
Licensed per lender AB, BC, NS, ON Confirm with regulator
Applications go through our partner Loans Canada, which may match you with this or other lenders. Koke may be paid for referrals. Lenders decide approval, cost and terms.
Licensed per lender AB, BC, MB, NB, NL, NS, ON, SK Confirm with regulator
Applications go through our partner Loans Canada, which may match you with this or other lenders. Koke may be paid for referrals. Lenders decide approval, cost and terms.
No storefronts confirmed in the last 90 days. Lenders listed above serve Toronto online.
Toronto is the only city in this list that licenses payday lenders on top of the provincial rules. Since 2018, storefront payday loan businesses have needed a municipal licence, and the city capped how many can operate and required them to post information about cheaper alternatives. Those rules came out of a long debate about how many lenders had clustered in lower-income neighbourhoods. Online lenders don't need the city licence, but they still need an Ontario one, and Ontario gives borrowers some of the strongest rights in the country.
You can cancel within two business days of signing, for free, without giving a reason. A lender can’t roll your loan into a new one, can’t lend you more than 50% of your net pay, and has to offer an extended payment plan if this is your third loan in 63 days. If you fall behind, interest on the overdue amount is capped at 2.5% a month, the bounced-payment fee at $20, and the lender can contact you no more than three times a week.
Rent, almost always. With average rents among the highest in Canada, a late paycheque or a cut shift can put the rent payment at risk. If that’s your situation, call your landlord before you borrow: a few days’ grace with a written payment plan costs nothing. Toronto’s Rent Bank offers interest-free loans or grants to help eligible tenants cover arrears and avoid eviction.
Credit Canada, a non-profit based in Toronto, offers free credit counselling. Daily Bread Food Bank and its member agencies serve every part of the city. DUCA and Alterna are Toronto-area credit unions with small personal loans, and the big banks all offer overdraft protection that usually costs less than a payday loan.
A $1,000 loan to cover part of the rent costs $140 at Ontario’s cap, and only if $1,000 is no more than half your net pay. If you’d need to borrow again the following month, the third loan within 63 days triggers your right to an extended payment plan. That’s useful, but it’s also a signal to call Credit Canada or another non-profit counsellor, because the pattern rarely fixes itself.
Interest-free loans or grants for eligible tenants behind on rent or needing a deposit.
Non-profit credit counselling for Ontarians: free advice, budgeting and debt repayment programs.
Food support through member agencies across Toronto.
Storefront payday loan businesses need a City of Toronto licence as well as an Ontario licence. Online lenders need the Ontario licence.
Yes, if it's within two business days. Return the money and ask for written confirmation; you owe nothing else.
The Toronto Rent Bank offers interest-free loans or grants to eligible tenants. Call 311 to start.
One application, about three minutes. Our matching partner shows you the offer that fits your answers, from a lender that works in Ontario. Read the cost before you sign.
