Are you struggling to make rent this month? If so, an emergency loan for rent is available to help cover your rent costs. The financing option you choose depends on a few things, including your financial and credit score, and how long you expect to be experiencing financial hardships.
Read on to find out more about emergency rent loans, along with some alternatives to borrowing.
There are a few different loans you can apply for to get the funds needed to cover your rent, such as the following:
A personal loan can be used any way you see fit, including to cover your rent. You can borrow as little as $500 to a few thousand dollars, so just about any size rent can be covered.
These types of loans are usually best for those who have a steady job and decent credit. If you’ve got excellent credit, you may be able to secure a relatively affordable loan rate.
Loan terms for personal loans are typically anywhere from 6 months to 5 years, so you’ve got plenty of time to repay the loan you took out to cover your rent.
Find out how to get a $5,000 loan?
If you’ve got bad credit and can’t get approved for a personal loan, a payday loan may be a last resort. They’re generally very easy to get approved for. All you need is a steady income to ensure you have the funds from your next paycheque to repay what you owe. You might also be able to qualify if you have an unconventional source of income, such as government benefits.
Approval and funding are very fast, so you can get your hands on the cash you need to cover your rent by the time it’s due. Funding times vary by lender but some can approve and fund you the same day.
While personal loans allow you to repay the loan in regular instalments, payday loans must be paid back in one lump sum, usually by your next paycheck. Keep in mind that the interest charged on payday loans is higher than any other loan type. In fact, payday loan APRs are usually in the triple digits and can be as high as 780%.
Given this, the amount you inevitably owe will be much higher than the loan amount you apply for. For this reason, it’s important that you exhaust all other options before resorting to a payday loan.
The following chart displays the maximum cost to borrow $100 with a payday loan:
| Province | Maximum Allowable Cost To Borrow |
| Alberta, British Columbia, New Brunswick, & Ontario | $15 per $100 borrowed |
| Manitoba & Saskatchewan | $17 per $100 borrowed |
| Nova Scotia | $19 per $100 borrowed |
| Newfoundland & Labrador | $21 per $100 borrowed |
| Prince Edward Island | $25 per $100 borrowed |
| Northwest Territories, Nunavut, & Yukon | $60 per $100 borrowed |
| Quebec | 35% annual interest rate (AIR) |
Payday loans for rent are also convenient as many lenders accept various forms of income. So even if you’re unemployed (whether due to job loss or a disability) and need an emergency rent loan, you can still qualify for one. You simply need to show your other source of income, whether it’s EI, disability payments, or other financial assistance programs.
Rather than taking out a loan to cover your rent when cash is tight, you may want to consider using your credit card instead. If you’ve already got a card in your wallet with a high credit limit, ask your landlord if credit card payments may be accepted as a form of rent payment. If so, you can pay your rent by credit card and pay it back by the payment due date.
It should be noted that credit cards typically come with relatively high APRs, so borrowing against your card can also be an expensive option if you don’t make a full payment by the next billing period.
However, if you have a new credit card that is still within the low-rate introductory period, you won’t pay as much in interest even if you don’t make a full payment by the due date. But carrying a high balance month after month can cost you a lot in interest, especially once the APR jumps back up after the promotional period ends.
| RentMoola | Learn More |
| Plastiq | Learn More |
To apply for a rent loan, follow these steps:
To start the application process, you’ll first need to fill out a loan application, either online or in-person. Your lender will require several pieces of information, such as your personal details and contact information. They’ll also require details about your employment, income, debt, and your housing situation.
Getting pre-approved will allow you to see how much you qualify for without officially applying for the loan. This will give you the opportunity to compare your options without any hard credit checks.
In many cases, you can get pre-approved within minutes after completing a loan application.
With pre-approvals, lenders will assess your financial situation to determine how much of a loan you can get approved for and the interest rate to charge you.
If you choose to go ahead with the loan, you’ll need to provide your lender with a few important documents. These documents are used to support the information provided on the application. This may include a letter of employment, pay stubs, and bank statements. You’ll also have to show proof of identity in the form of a driver’s license, passport, or other government-issued ID.
If the lender approves your loan application, be sure to review it carefully before signing. Only after verifying that all information is accurate and you understand the costs should you sign.
Once you sign the rent loan agreement, your lender will send you your funds, usually by direct deposit or as an Interac e-transfer. Depending on the lender, you should receive your funds within 24 hours after loan approval.
Before applying for an emergency rent loan, consider other options first, such as the following:
If you’re able to come up with some of the rent, ask your landlord if you can make a partial rent payment. Your landlord may be willing to consider this option if you can prove that you can come up with the remaining funds before the next rent payment is due.
If you’ve been diligent with every rent payment up to now, your landlord might be even more open to accepting partial rent payment this one time. Be sure to get the partial payment agreement in writing just in case you encounter issues with your landlord in the future.
Check out the average rent payments in Canada.
If you have a close relationship with your family and friends, consider asking for some financial help. But before you borrow from loved ones, make sure you are all clear on the stipulations of the handout.
More specifically, determine when and the money will be repaid and make sure you pay back the money borrowed by then. Otherwise, you could negatively affect your relationship.
If your landlord doesn’t accept credit card payments, you might be able to get a cash advance instead and use the funds to pay your rent. Generally speaking, credit card cash advances are a bit cheaper than short-term loans.
That being said, you’ll likely be charged a cash advance fee, in addition to the interest. Plus, there may be a limit to how much you can withdraw per day, which is usually no more than $1,000.
There are several rental assistance programs offered by the government and private entities throughout Canada to look into, such as the following.
It’s one thing to be a little short on cash one month and unable to make the full rent payment this one time. But if this is a long-term financial issue you’re having, perhaps it may be time to look into other options to help you handle your hardships.
Different provinces and cities across Canada offer their own short-term housing assistance programs to help residents who are having trouble covering their housing costs. Depending on the program and your particular situation, some or all of your rent can be covered temporarily.
Get in touch with a representative from your province or city to find out what types of programs are available to you.
If you don’t find any luck with government-based assistance, consider local charities or churches that may offer financial help. Reach out to ministries and non-profit organizations in your area to see how they can help.
Before you get to the point where you’re scrambling to come up with enough money to cover this month’s rent, consider some preemptive measures to avoid such a situation. Here are a few things you can do to make sure you don’t encounter any rent payment problems that may require an emergency rent loan in the future:
If you’re having financial issues, an emergency rent loan may be a life-saver. That being said, there may be alternatives to loans, so you can get your hands on the money you need to make this month’s rent. But before you find yourself in a position where you’re unable to cover your rent, consider taking steps to ensure you’re never faced with the perspective of missing a rent payment in the first place.
Rating of 5/5 based on 4 votes.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Frank Mortgage is Canada’s one-stop shop for mortgages. Get up to $1,500 cash back on your mortgage.
Great unsecured credit card for customers currently in, or recently discharged from, a consumer proposal or bankruptcy
Earn an average 5%¹ cashback at thousands of partners and at least 0.5%² cashback guaranteed with Neo.
KOHO’s Credit Building Program helps you build a better credit history with easy to manage payments for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.
