Collateral loans in Ontario

How a collateral loan is priced and assessed in Ontario depends on the product and on the provincial rules that sit over it.

Read the collateral loan description with the Ontario position attached: the product terms come from the lender, and the licensing rules come from the province.

How the product is defined

Collateral loans: Borrowing against an asset a lender will hold, from vehicles to savings, and what happens on default.

A collateral loan is secured by an asset the lender holds or registers against, from a vehicle to savings, and default puts that asset at risk.

The asset is the lender's fallback, so the price is usually lower than for an unsecured equivalent.

Default puts the asset at risk, which is the trade a borrower makes for the lower price.

The provincial layer

In Ontario, payday lending operates under a licensed provincial regime, and the federal Payday Lending Regulations (SOR/2024-114) record a maximum cost of borrowing of $14 for each $100 advanced under SOR/2024-114.

Consumer credit in Ontario is licensed by the provincial or territorial regulator, and the Financial Consumer Agency of Canada publishes the list of provincial and territorial regulators.

One of the covered Ontario places is Penetanguishene, counted at 10,077 residents in the 2021 Census.

The 2021 Census figures for the largest covered Ontario place, Toronto, give 2,794,356 residents; 527 places have pages on this site. The same rule applies to a collateral loan in Ontario.

Reading the application

Where the credit file is thin, a lender considering a collateral loan may look at banking conduct as well.

Where a collateral loan is secured, the pledged asset is valued as part of the assessment.

The lender sets the price for a collateral loan inside the legal ceiling, according to the risk it reads in the application.

Nearby product pages

The following products are assessed inside the same provincial framework.

• Business loans: Commercial borrowing, what lenders read in a business file, and how the assessment differs from personal credit.
• Payday loans: Small, short-term advances against a pay date, the most tightly regulated product in Canadian consumer credit.
• Collateral loans: Borrowing against an asset a lender will hold, from vehicles to savings, and what happens on default.

Nothing on the Ontario collateral loan page is estimated; the payday position comes from the federal Payday Lending Regulations (SOR/2024-114).

For a collateral loan in Ontario, the surrounding places range from Toronto at 2,794,356 residents to smaller communities across the province.

For Ontario, the payday position and the product terms for a collateral loan come from separate published sources.

Where a figure for Ontario could not be verified, the page names the publisher rather than printing a number.

Penetanguishene, at 10,077 residents in the 2021 Census, is one of the 527 covered Ontario places where a collateral loan could be arranged.

The Ontario pages place a collateral loan alongside 527 covered communities, including Penetanguishene at 10,077 residents.

The record for a collateral loan in Ontario carries the provincial position and the product description together.

Anyone reading about a collateral loan in Ontario can compare the same product page for every other province.

The provincial figures for Ontario apply to a collateral loan wherever the borrower lives, from Toronto outward.

Penetanguishene is one of the 527 Ontario places on the site, and a collateral loan there follows the same provincial rules.

The 527 covered Ontario places are all inside the same provincial framework for a collateral loan.

loanmoose.ca is not a lender and does not make credit decisions. The lowest rates are only available to the most qualified applicants.

Population and land area figures come from Statistics Canada's 2021 Census of Population; regulatory statements are attributed to the federal Payday Lending Regulations (SOR/2024-114).

Reading the national page beside the provincial version shows which parts of the cost come from the product and which come from the province.