Learn whether there are regulations that apply to payday loans in your province or territory.
Regulations for payday loans vary between provinces and territories. The rules in your specific location have a huge effect on what lenders can charge. As a borrower, it’s important for you to be aware of these regulations and to make sure your loan has the right terms and fees dictated by the government. Read on to learn about the differences.
Cash Money Payday Loan
- Minimum loan amount: $50
- Maximum loan amount: $1,500
- Loan term: 12-14 days. Vary by province
- Turnaround time: Within 2 hours with INTERAC e-Transfer® if approved
- Key requirements: Be 18+ years old, provide proof of recurring income
Find Payday Loans in your province
Check the websites of any lenders you’re interested in to confirm they operate in your province of residence.
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, call 1-866-398-5999 from anywhere in Canada to talk to a credit counsellor from Credit Counselling Canada.
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- Speak with creditors about extending the due date of your payment.
- Consider a small personal loan from a bank or credit union. You may qualify for a loan with lower interest rates than a payday loan.
- Pay with your credit card with credit available to cover your emergency or payment. This is not a long term solution, rather an alternative to a short term loan with higher rates.
- The Financial Consumer Agency of Canada website shows you how small amount loans work and suggests other options that may help you.
Are payday loans available in your province?
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 fees can vary between. Ensure that any lender you choose abides by the laws of the place you live.
Newfoundland and Labrador, the Yukon, Nunavut and the Northwest Territories do not have legislation regulating payday loans.
Payday lending regulations by province and territory
Every province, except Newfoundland and Labrador, has enacted some type of legislation with regards to short term loans. The three territories, Nunavut, the Yukon and the Northwest Territories do net yet have legislation either. You can view the individual legislation for each province in the table below.
|British Columbia||$17 per $100||Only one loan per borrower at a time is allowed. Borrower can cancel loan up to the end of the following day free of charge. Lender is restricted from accessing the borrower’s bank account or employer. Borrowing limit of 50% of recipient’s take home pay.|
|Alberta||$15 per $100||N/A|
|Saskatchewan||Capped at 23% of the principal amount (including interest and fees). Cap of 30% on a defaulted loan||Borrowing limit of 50% of recipient’s take home pay.|
|Manitoba||$17 per $100 for a period of two weeks||Any additional loans taken out are limited to a rate of 5% interest.|
|Ontario||$15 per $100||N/A|
|Quebec||Limit of 35% annual interest on all loans||N/A|
|New Brunswick||$15 per $100||Borrowers can cancel their loan free of charge for up to 48 hours. Lenders are limited to the number of loans one individual can have. The loan amount is limited to 30% of the recipient’s net pay.|
|Nova Scotia||$25 per $100||N/A|
|Prince Edward Island||$25 per $100 borrowed for a period of two weeks||N/A|
As mentioned, Newfoundland and Labrador, the Yukon, Nunavut and the Northwest Territories do not have legislation surrounding payday loans.
What are lenders allowed to charge you?
The Annual Percentage Rate, or APR, is one of the main costs you will need to consider with a payday loan. In most provinces that regulate payday loans, you’ll find that the APR is restricted. Otherwise, a lender may be able to charge as much as it wants, which can be the case in Newfoundland and Labrador where there is no legislation. Make sure you know the total cost of a loan before you borrow the money.
Some provinces have other restrictions on the percentage lenders may charge based on how much you borrow or in the total amount you can be charged or borrow in a year. These regulations usually only apply to interest rates, meaning a lender can charge fees on top of the interest rate or for refinancing your loan.
How much you can borrow and how long you have to repay
Some provinces impose limits on loan amounts and terms. 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 in some provinces.
Payday loans are meant to last until your next payday. This means that a typical loan term will be two to four weeks, and the length of your loan has a huge impact on the amount of interest you’ll end up paying. Make sure the amount you’re borrowing and the payment plan aligns with your budget as well as the local provincial regulations.