Payday loan rules across Canada
Payday lending is regulated province by province, not federally, so the maximum cost of borrowing and specific protections differ depending on where you live.
Every Canadian province except Quebec has specific legislation allowing licensed payday lenders to operate, each with its own maximum cost of borrowing, generally in the range of $14 to $17 per $100 borrowed. Exact figures change periodically, so always confirm the current rate in your loan offer.
Province and territory snapshot
A general overview of how each region approaches payday loan regulation. Confirm exact current figures with your provincial consumer protection office or in your loan offer.
Ontario ON
Ontario caps the cost of borrowing and requires a two-business-day cooling-off period during which a loan can be cancelled without penalty.
British Columbia BC
British Columbia sets a maximum cost of borrowing and limits the number of payday loans a lender can extend to the same borrower at once.
Alberta AB
Alberta has one of the lower cost-of-borrowing caps in the country and restricts default charges if a payment is missed.
Manitoba MB
Manitoba regulates both the cost of borrowing and limits on rolling a loan into a new one, along with rules on repeat borrowing within a short window.
Saskatchewan SK
Saskatchewan licenses payday lenders provincially and sets maximum charges along with rules for extended payment plans.
Nova Scotia NS
Nova Scotia regulates payday lending through its Utility and Review Board, with defined limits on cost of borrowing and default fees.
New Brunswick NB
New Brunswick requires payday lenders to be licensed with the Financial and Consumer Services Commission and sets a maximum fee per $100 borrowed.
Newfoundland and Labrador NL
Newfoundland and Labrador regulates payday loans under the Consumer Protection and Business Practices Act, with a defined maximum cost of borrowing.
Prince Edward Island PE
Prince Edward Island licenses payday lenders and sets borrower protections under its consumer protection legislation.
Yukon YT
Yukon follows federal Criminal Code interest rate exemptions for licensed short-term lenders operating in the territory.
Northwest Territories NT
Northwest Territories applies its own consumer protection framework to short-term lenders operating within the territory.
Nunavut NU
Nunavut applies its own consumer protection framework to short-term lenders operating within the territory.
A note on Quebec
Quebec applies a general interest rate cap that is significantly lower than the cost structure of a typical payday loan, which effectively means traditional payday loans as offered elsewhere in Canada aren't available there. If you're in Quebec, other short-term credit options regulated under that province's consumer protection rules may apply instead.
Why the numbers can shift
Provincial governments periodically review and adjust payday loan rate caps, as several provinces have done over the past decade, generally trending toward lower maximum costs for borrowers. Because of this, treat the figures on this page as a general guide and rely on the exact disclosure in your loan offer for the number that actually applies to you.
Common questions about provincial rules
Apply and see your province's terms
Your exact cost of borrowing is shown before you accept any offer.