Co-signing and guarantor borrowing in Ontario: the rules that apply, what lenders look for, and the cities we cover.
Rules that apply in Ontario
Consumer credit in Ontario is shaped by federal law — including the criminal interest rate and the disclosure rules the Financial Consumer Agency of Canada enforces at federally regulated institutions — and by provincial consumer-protection law, which governs payday lending, contracts, and collections.
Payday-loan cost cap in this province
The maximum allowable cost of borrowing for a payday loan is $14 per $100 advanced, set by Ontario O. Reg. 475/24. Payday loans are exempt from the federal 35% criminal interest rate only where the lender is provincially licensed and complies with that province's rules.
Source: Ontario Regulation 475/24 (payday cost of borrowing)
What a co-signer needs in Ontario
Lenders operating in Ontario generally assess a co-signed application on the combined file: both applicants' credit histories, incomes, and existing debts. There is no provincial minimum credit score — each lender sets its own policy. A co-signer with a stronger file usually improves the rate band, but never guarantees approval.
Alternatives to co-signing in Ontario
- No-guarantor loans that rely on your own file.
- Bad-credit loan options with lower score requirements.
- Secured lines of credit that use an asset rather than a signature.
Cities in Ontario
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