Payday loan rules in Canada, province by province
The federal government sets the price ceiling. Each province fills in the rest. This page shows both, side by side.
What are the payday loan laws in Canada? Since January 1, 2025, a payday loan can cost no more than $14 per $100 borrowed in any province with a federally designated payday regime, the loan can't exceed $1,500 or 62 days, and a bounced-payment fee is capped at $20. Provinces add limits based on net pay, cooling-off periods and rollover bans. Quebec and the territories aren't designated, so the 35% annual criminal rate applies.
The federal layer
Section 347 of the Criminal Code sets the criminal interest rate, which dropped to 35% APR on January 1, 2025. A payday loan is exempt from that cap only if it's $1,500 or less, for 62 days or less, made by a lender licensed in a designated province. The Criminal Interest Rate Regulations that took effect the same day set the maximum cost of those loans at $14 per $100 and cap dishonoured payment fees at $20.
The provincial layer
Provinces license the lenders and add consumer protections. The most important differences you'll notice are how much of your pay a lender can lend against, how long you have to cancel, and whether repeat borrowers get special treatment such as an extended payment plan.
| Province or territory | Federal status | Maximum cost | Loan size limit | Cancellation window | Rollovers |
|---|---|---|---|---|---|
| Ontario | Designated | $14 per $100 | 50% of your net pay | 2 business days | Not allowed |
| British Columbia | Designated | $14 per $100 | 50% of your net pay | 2 business days | Not allowed |
| Alberta | Designated | $14 per $100 | Tied to your net pay | 2 business days | Restricted |
| Saskatchewan | Designated | $14 per $100 | Tied to your net pay | As short as the next business day | Restricted |
| Manitoba | Designated | $14 per $100 | 30% of your net pay | 48 hours (Sundays and holidays excluded) | Restricted |
| Quebec | Not designated | 35% APR cap applies | Not applicable | Not applicable | Not applicable |
| New Brunswick | Designated | $14 per $100 | 30% of your net pay | 48 hours (Sundays and holidays excluded) | Restricted |
| Nova Scotia | Designated | $14 per $100 | Tied to your net pay | 2 business days | Restricted |
| Prince Edward Island | Designated | $14 per $100 | Tied to your net pay | Short cancellation window; check your agreement | Restricted |
| Newfoundland and Labrador | Designated | $14 per $100 | 50% of your net pay | 2 business days | Not allowed |
| Yukon | Not designated | 35% APR cap applies | Not applicable | Not applicable | Not applicable |
| Northwest Territories | Not designated | 35% APR cap applies | Not applicable | Not applicable | Not applicable |
| Nunavut | Not designated | 35% APR cap applies | Not applicable | Not applicable | Not applicable |
Rights you have almost everywhere
- A written agreement showing the total cost in dollars and as an APR
- A cooling-off period to cancel and return the money without paying the fee
- The right to repay early
- Protection from rollovers, where a lender charges a new fee to extend an unpaid loan
- A lender that's licensed where you live and has its licence on display, including online
How to check a lender
Every province that licenses payday lenders publishes a way to confirm a licence. Before you sign, search the lender's legal name on your regulator's website. Links are on each province page. The Financial Consumer Agency of Canada also has a plain guide to payday loans.
Common questions
Which province has the cheapest payday loans?
Since 2025 the maximum is the same, $14 per $100, in every designated province. Lenders can charge less, but most charge the maximum.
Are payday loans legal in Canada?
Yes, in the nine provinces with a designated regime and only from licensed lenders. Lenders charging payday-style fees in Quebec or the territories would breach the 35% criminal rate cap.
What's an extended payment plan?
Some provinces require lenders to offer repeat borrowers the option to repay over several pay periods rather than all at once, without extra fees. Ask your lender if it applies to you.
Written by the ICCE Editorial Team. Last reviewed October 2026.