Loans and borrowing in Ontario

This page covers the rules that apply to borrowers in Ontario and links to the 144 communities we cover in the province.

By Promissory.ca Editorial Team Reviewed against official Canadian sources Last updated: 2026-09-16

Borrowing rules that apply in Ontario

In Ontario, the cost of borrowing a payday loan is capped at $14 for every $100 borrowed, with a maximum dishonoured-payment fee of $20. The maximum payday loan amount is $1,500.

The federal criminal rate of interest is 35% APR (reduced from 48% on 1 January 2025).
A payday loan cannot exceed 50% of your net pay.
Cooling-off period to cancel: 2 business days.
Loan rollover: Not permitted.
Mortgages from federally regulated lenders must qualify under OSFI's stress test — the greater of your contract rate plus 2% or 5.25%.

Source: FCAC — Payday loans — Financial Consumer Agency of Canada. Retrieved 2026-09-16.

Loan categories

Personal Loans — A personal loan gives you a lump sum that you repay with interest over an agreed term, usually in equal…
Instalment Loans — Instalment loans split repayment into multiple fixed payments rather than a single lump sum.
Payday Loans — A payday loan is a short-term loan, typically up to $1,500 and repaid within 62 days.
Bad Credit Loans — Lenders price risk.
Car Loans — Car loans are usually secured by the vehicle, which means the lender can repossess it if you default.
Business Loans — Business lending is underwritten on the strength of the business, not just the owner's personal credit.
Debt Consolidation — Debt consolidation is a strategy, not a single product.
Mortgages — A mortgage is secured against your home.
HELOC & Home Equity — A HELOC is a revolving, secured line of credit registered against your property.
Emergency Loans — Emergency borrowing is defined by speed rather than by product.

What a payday loan costs

What a payday loan costs at the federal cap
Loan amount	Term	Cost per $100	Total cost	Total repayable	Approx. APR
$500	14 days	$14	$70	$570	365%

Illustration using the federal $14 per $100 limit. Source: Financial Consumer Agency of Canada.

Mortgage payment calculator for Ontario

Estimate a monthly mortgage payment for a home in Ontario. Enter your own numbers — the calculator runs in your browser and nothing is sent to a server. Federally regulated lenders must qualify you at the greater of your contract rate plus 2% or 5.25% under OSFI Guideline B-20, so a payment you can afford is not the same as a payment you will qualify for.

Home price ($)

Down payment ($)

Interest rate (%)

Amortization (years)

Estimated monthly payment

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See the mortgage calculator for Ontario, the mortgage affordability calculator, or the mortgage guide.

Frequently asked questions

What is the maximum cost of a payday loan in Ontario?

The cost of borrowing is capped at $14 per $100, with dishonoured-payment fees capped at $20.

What loans are available to residents of Ontario?

Residents can access personal loans, instalment loans, car loans, mortgages and home equity products, and where permitted, short-term credit. Terms and availability depend on the lender and your profile.

Does the federal mortgage stress test apply in Ontario?

Yes. Federally regulated lenders apply the minimum qualifying rate — the greater of your contract rate plus 2% or 5.25% — under OSFI Guideline B-20.

Where can I get free debt help in Ontario?

Non-profit credit counselling services offer low or no-cost budgeting and creditor negotiation. A Licensed Insolvency Trustee can explain consumer proposals and bankruptcy.

Cities in Ontario

Important legal information

Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.

Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.

Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.

Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.

There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.

Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.

We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.

If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.