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Payday loan regulations in Canada

Learn whether your province or territory has regulations surrounding payday loans – and find out how much it might cost you to borrow one.

Regulations by province Jump to regulations
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Payday loan regulations vary between provinces and territories. The rules in your specific location have a huge effect on what lenders can charge, as well as how much you can borrow and whether you can borrow more than one payday loan at a time. As a borrower, it’s important for you to be aware of the regulations in your province or territory so you can make sure your loan has the right terms and fees as dictated by the government. Read on to learn about the legislation that applies to each province.

Are payday loans available in your province or territory?

Payday loans are available in all provinces and territories across Canada. You should be aware that payday loans are regulated by individual provinces, meaning costs and terms can vary. Ensure that any lender you choose abides by the regulations of your province of residence.

While all provinces have unique legislation at the provincial level, the Yukon, Nunavut and the Northwest Territories do not have territorial legislation regulating payday loans, and are instead overseen by the federal government.

Payday loan regulations in Canada

While all 10 provinces have legislation at the provincial level, the 3 territories – Yukon, Northwest Territories and Nunavut – are still patiently waiting, and instead have federal regulations.

ProvinceMaximumAdditional information
British Columbia$15 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Only one loan per borrower at a time is allowed. Cooling off period of 2 business days. Borrowing limit of 50% of recipient’s paycheque. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Payday loans cannot be rolled over or extended.
Alberta$15 per $100Maximum borrowing amount of $1,500. Term of loan must be between 42 and 62 days. Cooling off period of 2 business days. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Payday loans cannot be rolled over or extended.
Saskatchewan$17 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Only one loan per borrower at a time is allowed. Cooling off period of next business day. Borrowing limit of 50% of recipient’s take-home pay. Payday loans cannot be rolled over or extended.
Manitoba$17 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Cooling off period of 48 hours, excluding Sundays and holidays. Borrowing limit of 30% of recipient’s net pay. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Loans can be extended or rolled over.
Ontario$15 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Borrowing limit of 50% of recipient’s net income. Only one loan per borrower at a time is allowed. Cooling off period of 2 business days. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Payday loans cannot be rolled over or extended. Lender must offer an extended payment plan if borrower takes out 3 loans within a 63-day period. For more information, read our guide here.
QuebecLimit of 35% annual interest rate (AIR)Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Payday loans cannot be rolled over or extended.
Newfoundland and Labrador$21 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Only one loan per borrower at a time is allowed. Cooling off period of 48 hours, excluding Sundays and holidays. Borrowing limit of 50% of recipient’s take-home pay. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Payday loans cannot be rolled over or extended.
New Brunswick$15 per $100Maximum borrowing amount of $1,500. Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages. Cooling off period of 48 hours, excluding Sundays and holidays. The loan amount is limited to 30% of the recipient’s net pay.
Nova Scotia$19 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Cooling off period of next business day (2 days for online payday loans). Lender is restricted from accessing the borrower’s bank account (unless it’s for pre-authorized debit) or wages.
Prince Edward Island$15 per $100Maximum borrowing amount of $1,500. Term of loan cannot exceed 62 days. Cooling off period of 2 business days.
Northwest Territories, Nunavut & the Yukon$60 per $100Term of loan cannot exceed 62 days. Maximum borrowing amount of $1,500.

What are lenders allowed to charge you?

The annual percentage rate (APR) or the fee that you’ll pay to borrow money is one of the main costs you will need to consider with a payday loan. In all provinces, regulations restrict the maximum fee a lender is allowed to charge – and the fee is typically shown as both an APR as well as a dollar amount per $100 borrowed (e.g. $15 fee per $100 borrowed). In the 3 territories, there is no legislation which means payday loans are regulated at the federal level. The federal level sets the maximum charge at $60 in fees per $100 borrowed.

Make sure you know the total cost of a loan before you borrow the money based on your province or territory of residence. While fees are capped per $100 borrowed, you could incur more interest charges or fees if you fail to pay your loan back on time and in full.

Learn the ins and outs of payday lending

How much you can borrow and how long you have to repay

The maximum borrowing amount for a payday loan is $1,500. Some provinces also impose additional limits on how much you can borrow. These limits are generally affected by how much money you bring home a month from your job, with maximum limits sitting between 30-50% of your monthly salary.

Payday loans are meant to last until your next payday. This means that a typical loan term will be 1 to 4 weeks. Loan terms are usually capped at a maximum of 62 days. Make sure the amount you’re borrowing and the payment plan aligns with your budget and your pay schedule, as well as the local provincial or territorial regulations.

What to expect when you get a payday loan

If you want to take out a payday loan, you’ll need to provide the lender the following:

  • Personal information such as your name, address and contact details
  • Bank account details
  • Proof of regular income such as pay stubs
  • Proof of identity such as your driver’s licence

Before getting your funds, you’ll need to fill out a form that allows the lender to withdraw the total loan amount, including fees, directly from your bank account when the payday loan is due (“pre-authorized debit”). Another option is to provide a post-dated cheque for the total loan amount, including fees.

You’ll get your funds through e-Transfer or a prepaid card in some cases.

⚠️ Warning: Be cautious with payday loans
Payday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider alternatives instead of a payday loan:
  • Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
  • Debt relief companies. There are services to help you reduce your debt payments.
  • Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
  • Side jobs. Sell unwanted items online, sign up for food delivery and more.

Compare licensed payday lenders

Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
BC, NS, ON, SK
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).

You'll need to be 18 years of age or older and have a net income of at least $1,000/month. Residents of MB and NB must apply in-store for a loan.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.

To be eligible, you'll need to be at least 19 years of age and have a net income of at least $800/month deposited into your bank account.
GoDay Payday Loan
$100 - $1,500
Up to 62 days
Varies by Province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI, SK
To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.
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Maximum borrowing costs per province
Always refer to your contract for exact repayment amounts and costs as they may vary from our results.
Province Maximum allowable cost of borrowing
Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island $15 per $100 borrowed
Manitoba & Saskatchewan $17 per $100 borrowed
Nova Scotia $19 per $100 borrowed
Newfoundland and Labrador $21 per $100 borrowed
Northwest Territories, Nunavut & the Yukon $60 per $100 borrowed
Quebec Limit of 35% annual interest rate (AIR)

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