Payday loans in Ontario
Canada's biggest payday loan market also has some of its most detailed borrower protections. Here's what they mean for you before you apply.
Ontario's rules in one card
- Maximum cost
- $14 per $100
- Largest loan
- $1,500
- Loan size limit
- 50% of your net pay
- Longest term
- 62 days
- Cancellation window
- 2 business days
- Rollovers
- Not allowed
- Dishonoured payment fee
- $20 maximum
Confirm with Consumer Protection Ontario.
How do payday loans work in Ontario? Ontario payday lenders must be licensed by the province and can charge no more than $14 per $100 borrowed. A loan can't be more than 50% of your net pay or $1,500, you have two business days to cancel without paying the fee, and rollovers are banned. If you take a third loan from the same lender within 63 days, the lender must offer you an extended payment plan.
The rules that apply here
Ontario's Payday Loans Act, 2008 governs every lender and broker offering payday loans to Ontarians, whether from a storefront on Queen Street or a website based somewhere else. Online lenders must hold the same Ontario licence and display it on their site. The federal $14-per-$100 cap sits on top of that, and Ontario's earlier $15 cap no longer applies.
Three protections are worth knowing by heart:
- Half your pay, at most. A lender can't lend you more than 50% of your net pay for the period.
- Two business days to change your mind. Cancel in writing within that window, return the principal, and you owe nothing else.
- The third-loan rule. A third loan within 63 days entitles you to an extended payment plan, so you can repay over several pay periods instead of one.
Why Ontarians end up borrowing
Most of the Ontario applications we see trace back to two things: rent and transportation. A car that won't start in Barrie or Sudbury can mean a missed shift. A rent increase in the GTA can blow a hole in a budget that was already stretched. If your trouble is a hydro bill, check the Ontario Electricity Support Program first. It lowers bills for eligible low-income households, and your utility may also agree to an arrangement if you call before the disconnection date.
Checking an Ontario lender
Consumer Protection Ontario keeps a searchable list of licensed payday lenders. Search the lender's legal name before you sign, not just its website name. If it isn't listed, don't proceed. You can also file a complaint with Consumer Protection Ontario if a lender breaks the rules, for instance by charging more than the cap or pressuring you into a new loan.
Ontario city guides
- Toronto: Rents, TTC passes and what a GTA paycheque actually covers.
- Ottawa: Government pay cycles, winter costs and help in the capital.
- Mississauga: Commuter budgets, Peel Region support and car repair gaps.
- Hamilton: Shift work, steel-town pay schedules and local help.
- London: Student cash flow, healthcare shifts and Southwestern Ontario resources.
What Ontarians ask us most
What's the maximum payday loan in Ontario?
$1,500, or 50% of your net pay for the pay period, whichever is less.
How do I cancel a payday loan in Ontario?
Give the lender written notice within two business days of receiving the money and return the principal. You don't pay the fee, and the lender can't charge a cancellation penalty.
Do online payday lenders need an Ontario licence?
Yes. Any lender offering payday loans to Ontario residents needs a provincial licence, including lenders that operate only online.
What is Ontario's extended payment plan?
If you take out three payday loans from the same lender within 63 days, the lender must offer to let you repay the third loan in instalments over several pay periods.
Checked against the Payday Loans Act, 2008 and Consumer Protection Ontario guidance in October 2026.