Payday Loans Ontario: What You Should Know 

July 2, 2024
6 min

Whether your furnace stops working in the depths of winter or your rent suddenly increases, you might need instant access to quick cash that you don’t have. This is often when people turn to payday loans. 

For decades, Ontario residents have turned to payday cash loans to bridge the gap between paychecks. The problem is, payday loans are an extremely expensive way to borrow. They also come with short repayment timelines, which can make it difficult to come up with the money to pay them back. If you miss a payment, you’re faced with additional fees, making it easy to spiral into a cycle of debt.   

What are payday loans?

Payday loans are high-cost, short term loans that allow you to borrow up to $1,500 and require repayment within 62 days.1 As the name suggests, payday loans are supposed to be repaid on your next payday. If you don’t make the payment, you’re charged additional fees and interest.

How to apply for a payday loan in Ontario?

It’s easy to get a payday loan in Ontario. You can fill in a payday loan application online or at a brick-and-mortar location in your area. In-store and online payday loan lenders will typically want to see proof of:

  • Regular income (three months of continuous employment income)
  • Permanent address (request to see a utility bill)
  • Chequing account 

Before you get your money, you’ll have to complete a form to allow the lender to withdraw the repayments from your bank account through pre-authorized debit. Another option is to provide a post-dated cheque. 

If you apply for online payday loans, the lender will deposit the funds into your bank account. If you apply in person, you can request cash or some lenders offer prepaid cards. 

How much does a payday loan cost in Ontario?

Payday loans are an extremely expensive way to borrow money. In Ontario, the maximum cost a lender can charge for a $100 payday cash loan is $15.1 

To highlight the cost of a payday loan, say you need to borrow $300 to pay an emergency expense. To borrow $300 for 2 weeks will cost you a $45 flat fee.2 Alternatively, borrowing $300 from your credit card with an interest rate of 23% would only cost you $6.15 for the same period of time. 

Payday loan restrictions in Ontario 

If you’re considering a payday loan, make sure you understand what payday lenders are allowed and not allowed to do in Ontario. Each province and territory has specific rules. 

In Ontario, lenders can not:3 

  • Provide a payday loan that is more than 50% of the borrower’s net income per loan.
  • Offer rollover payday cash loans - this means you can roll what you owe on a previous payday loan into a second payday loan. You have to pay off the initial loan before you can borrow again. 
  • Offer additional financial products (e.g. insurance) with a payday loan agreement.
  • Extend a loan agreement beyond the original termination date.
  • Charge a fee greater than $25 for a bounced cheque or dishonoured pre-authorized payment. 

Online cash advance as an alternative to payday loans in Ontario  

If you need fast access to cash but don’t want to take on a high-cost instant loan from a payday lender, an online cash advance offers an alternative to help with immediate financial needs. 

With an online cash advance loan from Bree, you can receive up to $350 at 0% interest with no credit check. Thousands of Canadians are turning to Bree as a cheaper alternative to payday lenders, especially those with bad credit who need an instant loan for urgent financial assistance.

How to get a cash advance loan in Ontario?

To obtain an instant cash loan from Bree, you’ll need to provide proof that: 

  • You have a valid Canadian bank account and debit card
  • Income is deposited into your account on consistent dates
  • You have enough money to repay your loan after your next paycheck 

How much do instant online loans cost in Ontario?

Cash advance loans from Bree provide a more cost-efficient way to borrow money compared to payday loans. With 0% interest and no late fees, the only costs you’ll need to consider are: 

  • Optional express delivery. The standard delivery time is 3 business days, and this is totally free. If you need your money sooner, you can pay a small fee to receive your money within minutes. 
  • Membership. All new users get a 30-day free trial from Bree to test out the service. When the trial ends, Bree’s monthly membership fee is $2.99 per month and cancellable at any time. 
  • Optional tip. Since Bree doesn’t charge interest or late fees, there’s an option to provide a tip. If you love the service and can afford to support Bree, this is a voluntary way to show your support. 

How Bree cash advance loans compare to Ontario payday loans?

Bree Cash Advance

  • Annual percentage rate (APR): 0%
  • Insufficient funds fee (NSF): $0
  • Late fee: None
  • Require credit check: No
  • Maximum loan amount: $350
  • Delivery speed: Within 5 min (for $) or 3 days (free)
  • Repayment timeline: Next paycheck

Ontario Payday Loan

  • Annual percentage rate (APR): 391%4
  • Insufficient funds fee (NSF): $25
  • Late fee: Varies by lender
  • Require credit check: No
  • Maximum loan amount: $1,500
  • Delivery speed: Within 5 min (for $) or 3 days (free)
  • Repayment timeline: Varied between lenders (generally within minutes to 24 hours)

Cash advance and Ontario payday loans FAQs

Still have questions about cash advance loans and instant payday loans in Ontario? Find answers to some of the most frequently asked questions. 

Will a payday loan hurt my credit score?

Simply taking out an instant payday loan won’t hurt your credit score as most payday lenders don’t require a hard credit check. However, if you fail to repay your loan and it goes to collections, this can have a negative effect on your credit score. 

Will an online cash advance hurt my credit score?

No, an online cash advance from Bree won’t hurt your credit score, as there’s no hard or soft credit check required. 

Who should get a payday loan?

If you need immediate access to cash to pay for an emergency bill or unexpected expense, you might consider using an online payday loan company. However, it’s best to look for an alternate borrowing method such as a free instant cash advance from Bree, personal loans, borrowing money from a friend or family member, or even a credit card cash advance. 

What are the pros and cons of a payday loan?

The pros of borrowing money with an online payday loan include 24/7 applications, fast access to cash, and no credit check. However, there are some important cons to consider as well, including extremely high interest rates, late payment fees, and short repayment terms. 

Payday loan Ontario vs. Online cash advance 

If you can avoid taking on a payday loan, you should. Payday loans are an extremely expensive way to borrow money and it’s easy to fall into a debt cycle if you can’t make your repayment on time. If you need immediate access to cash to cover an emergency or unanticipated expense, consider alternative options like an online cash advance from Bree. With 0% interest, no late fees, and no credit check, what do you have to lose?


  1. Government of Canada, “Payday loans” as of June 29, 2024.
  2. Ontario, “Payday loan: your rights” as of June 29, 2024. 
  3. Ontario, "Guide to payday lenders," as of June 29, 2024.
  4. Quick Loans, “Payday loans,” as of June 29, 2024. 
July 2, 2024
6 min