How payday loans work in Brampton
Brampton is one of Canada's fastest-growing and most diverse cities, home to many newcomers and to workers in logistics, manufacturing and transportation.
Every payday loan in Brampton follows Ontario's Payday Loans Act, 2008. You can borrow $100 to $1,500, but no more than 50% of your net pay for the pay period. The cost can't exceed $14 per $100, the loan is usually due in one payment on your next payday, and you have two business days to cancel with no penalty.
What a payday loan costs in Brampton
| You borrow | $300 |
|---|---|
| Maximum cost ($14 per $100) | $42 |
| Total to repay | $342 |
| Due | One payment on your next payday |
| Take-home pay needed (50% rule) | At least $600 per pay period |
| APR on a 14-day loan | 365% |
If you take out three payday loans from the same lender within 63 days, Ontario requires the lender to offer an extended payment plan, letting you repay in instalments over several pay periods with no extra fees.
Borrowing in Brampton: what to know
If you're new to Canada, a payday loan isn't a way to build credit, since most payday lenders don't report to credit bureaus. Lenders will also want to see a Canadian bank account with about three months of regular income. A secured credit card is a better first step for building a credit history.
Getting your money in Brampton
You can apply from anywhere in Brampton, including Bramalea, Springdale, Heart Lake and Mount Pleasant. Once you e-sign your agreement, your lender sends the loan by Interac e-Transfer. Weekday morning applications are often funded within a few hours; evening and weekend applications usually fund the next business day.
Every lender we work with is licensed in Ontario. Lenders must show their licence number and the total cost of the loan before you sign. If a website offering loans in Brampton can't show an Ontario licence or asks for money upfront, don't apply.
Free financial help in Brampton
Brampton residents can call 211 for local supports, including settlement services for newcomers, and non-profit credit counselling is free in person or by phone.
If you believe a payday lender broke Ontario's rules, you can file a complaint with Consumer Protection Ontario. For free legal information, your local community legal clinic can help.