Short-Term Loans · Ontario
Short-Term Loans in Ontario
Short-term loan in Ontario follow the federal lending ceiling of 35% per year, with provincial licensing layered on top. Licensed regime — federal cap applies.
- Province Ontario (ON)
- Capital Toronto
- Payday lending Licensed regime — federal cap applies
- Cities covered 40
Short-term borrowing covers a wide range. At one end sits the payday-style advance repaid in one go. At the other sits a small loan paid back over a handful of instalments. Both are designed for a temporary gap. LoanGoose is a matching and comparison service rather than a lender, so we can lay out how each type behaves without steering you into one.
What counts as a short-term loan
There is no single legal definition in everyday use. What matters is the repayment window and the cost structure behind it. Two loans for the same amount can behave very differently depending on whether you repay in one payment or several.
- Single payment: due on your next payday.
- Instalment style: spread over a few payments.
- Secured or unsecured: collateral can change the cost.
- Licensed or not: provincial rules apply to licensed providers.
The link between a short term and a high cost
When a loan is repaid quickly, the fee is compressed into a small window. That is why a modest charge can translate into a very high annual rate. Where a province licenses payday lending, the FCAC — payday loans page confirms the federal cost cap of $14 per $100 advanced, and a province may set a lower cap; the lower figure applies. Quebec does not license payday lending, which effectively prohibits the model there.
The federal criminal rate of interest under Criminal Code s. 347 is 35% per year. That figure is a useful yardstick when you are weighing a short-term offer against a longer loan. The FCAC — debt and borrowing pages walk through the questions to ask.
Checking your options before you commit
- Work out exactly how much you need, and borrow no more.
- Compare the total cost of a short-term loan against a longer instalment loan.
- Ask about deferrals or payment plans on the bill you are covering.
- Read the disclosure and confirm the repayment date before you sign.
A short-term loan can be a costly fix for a timing problem, and it can deepen the problem if the repayment lands before your next income. Whether it fits depends on your circumstances, and a licensed professional is the right person for significant decisions.
LoanGoose is a loan matching and comparison service, not a lender. The lowest rates are only available to the most qualified applicants.
Cost rules that apply in Ontario
| Rule | Figure | What it means | Publisher |
|---|---|---|---|
| Criminal rate of interest (federal ceiling) | 35% per year | Above this, an agreement is a criminal offence. | Government of Canada (Justice Laws) |
| Federal cost-of-borrowing cap, licensed payday regime | $14 per $100 advanced | A province may set a lower cap; the lower figure applies. | Government of Canada (Canada Gazette) |
Your own rate is set by the lender and depends on your file.
Ontario cities
| City | 2021 population | Short-Term Loans page |
|---|---|---|
| Toronto | 2,794,356 | Short-Term Loans in Toronto |
| Ottawa | 1,017,449 | Short-Term Loans in Ottawa |
| Mississauga | 717,961 | Short-Term Loans in Mississauga |
| Brampton | 656,480 | Short-Term Loans in Brampton |
| Hamilton | 569,353 | Short-Term Loans in Hamilton |
| London | 422,324 | Short-Term Loans in London |
| Markham | 338,503 | Short-Term Loans in Markham |
| Vaughan | 323,103 | Short-Term Loans in Vaughan |
| Kitchener | 256,885 | Short-Term Loans in Kitchener |
| Windsor | 229,660 | Short-Term Loans in Windsor |
| Oakville | 213,759 | Short-Term Loans in Oakville |
| Richmond Hill | 202,022 | Short-Term Loans in Richmond Hill |
| Burlington | 186,948 | Short-Term Loans in Burlington |
| Oshawa | 175,383 | Short-Term Loans in Oshawa |
Compare short-term loans options
A matching step, not an application — we are not a lender and no amount, term or rate is promised here.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
Questions
Can I get short-term loan in Ontario?
Availability depends on the product and the lender. Where Ontario licenses the product, the federal cost cap and the criminal rate ceiling still apply.
What rules apply to short-term loan in Ontario?
The federal criminal rate of interest of 35% per year applies everywhere in Canada. Provincial licensing adds disclosure and licensing requirements on top, and provinces that license payday lending may set a lower cost cap than the federal one.
How do I compare short-term loans in Ontario?
Compare the total amount you would repay, not the advertised rate. Ask for the full cost of borrowing in writing, check the lender is licensed, and read the prepayment terms before signing anything.
Other loans in Ontario
-
Personal Loans
Compare personal loan offers from Canadian lenders and see what fits your budget.
-
Payday Loans
How payday loans work in Canada, what they cost, and why cheaper options are worth checking.
-
Cash Advances
What a cash advance really costs, and how it differs from a short-term loan or an instalment loan.
-
Instalment Loans
Compare instalment loans with fixed payments spread over a set schedule you agree to up front.
-
Loans for Bad Credit
How borrowing works when your credit history is uneven, and what to check before you apply.
-
No Credit Check Loans
How no credit check loans work in Canada, what they really cost, and the alternatives worth comparing first.
-
Emergency Loans
Emergency borrowing in Canada, from payment deferrals to payday loans, and how to weigh speed against cost.
-
Small Loans
Small loans in Canada: how lenders assess them, what drives the cost, and how to compare your options.
Sources
- Criminal Code s. 347 — criminal rate of interest —
- Payday Lending Regulations, SOR/2024-114 —
- FCAC — debt and borrowing —
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.