Knowing the payday loan rules by province tells you three things fast: how much a loan can cost, how much you can borrow, and what rights protect you if things go sideways. Since 1 January 2025, one federal cap now applies right across Canada. However, each province still adds its own protections on top. So before you sign anything, it helps to know exactly what applies where you live. Below, we break down the payday loan rules by province, starting with Ontario, British Columbia, Alberta, and Manitoba. Quick note: CashPicks is an independent comparison platform, not a lender.
The one rule that now applies across Canada
First, the big change. As of 1 January 2025, federal law caps the cost of a payday loan at $14 for every $100 borrowed, and that cap covers every fee combined. This came in through the federal Criminal Interest Rate Regulations, and it replaced the older, higher provincial rates such as $15 or $17 per $100.
A few limits go hand in hand with that cap. For example, the most you can borrow is generally $1,500, and the loan must be repaid within 62 days. In addition, a lender can charge no more than $20 if your payment bounces. So a $300 loan costs at most $42, while a $500 loan costs at most $70.
Payday loan rules by province at a glance
Here’s how the payday loan rules by province compare side by side. The cost cap is now the same wherever payday loans are offered, so the real differences sit in the extra protections each province adds.
| Province | Max cost | Max loan | Key extra rule |
|---|---|---|---|
| Ontario | $14 / $100 | $1,500 | No new loan until the current one is repaid |
| British Columbia | $14 / $100 | $1,500 | Two-business-day cooling-off period |
| Alberta | $14 / $100 | $1,500 | Instalment option on loans over $300 |
| Manitoba | $14 / $100 | $1,500 | 48-hour cancel; max 30% of net pay |
| Saskatchewan | $14 / $100 | $1,500 | Licensed lenders; cooling-off applies |
| Quebec | Not offered | — | 35% APR cap; payday loans not available |
Figures are current maximums and can change. Always confirm with your provincial regulator. CashPicks is not a lender.
Payday loan rules in Ontario
In Ontario, a payday loan can cost up to $14 per $100, and the loan is capped at $1,500. Importantly, you can’t take out a new payday loan until you’ve repaid the current one. Borrowing is also limited to 50% of your net pay, so the amount you qualify for depends on your income. If a payment bounces, the lender can charge a one-time fee of up to $20. You can read the official details on the Ontario government’s payday loan page.
Payday loan rules in British Columbia
British Columbia follows the same $14 per $100 cost cap and the $1,500 limit. However, BC also gives you a two-business-day cooling-off period. That means you can cancel a payday loan within two business days at no cost, even after you’ve signed. As in Ontario, you can borrow up to 50% of your net pay. To confirm a lender’s licence, check Consumer Protection BC before you share any personal details.
Payday loan rules in Alberta
Alberta also sits at $14 per $100 now, down from the old $15 rate. Beyond the cost cap, Alberta has a useful protection: for loans over $300, the lender must offer an instalment plan with at least 42 days to repay. As a result, borrowers get more breathing room than a single lump-sum due date. For more, see the federal Office of Consumer Affairs payday lending hub, which links to each province’s regulator.
Payday loan rules in Manitoba
Manitoba historically had some of the strictest rules, and that spirit continues. The cost is capped at $14 per $100, and you can cancel within 48 hours of signing. On top of that, you can borrow no more than 30% of your net pay, and you can hold only one payday loan at a time. The loan agreement must also show every fee, the total cost of credit, the APR, and the due date. The Manitoba Consumer Protection Office explains your rights in full.
The rest of Canada, in brief
The other provinces and territories follow the same $14 per $100 cost cap where payday loans are offered. Still, a few details vary. New Brunswick limits borrowing to 30% of net pay, while Newfoundland and Labrador uses the 50% figure. Saskatchewan, Nova Scotia, and Prince Edward Island require provincial licensing, disclosure, and a cooling-off period, and they generally ban rollovers. The territories follow the federal cap, though dedicated rules are thinner, so confirming the licence matters even more there.
Quebec is the clear exception. Because Quebec applies a 35% annual rate cap, traditional payday lending is effectively not offered in the province at all.
How to check a payday lender is licensed
Wherever you live, the safest first step is the same: confirm the lender holds a licence in your province. Every legitimate payday lender must be licensed and should display its registration clearly. Meanwhile, be cautious with phrases like “guaranteed approval” or “no refusal.” In reality, no regulated lender in Canada can promise to approve everyone, so those phrases are marketing rather than a promise. To weigh your options, you can compare licensed lenders on CashPicks before you apply.
Borrow responsibly
Payday loans can help in a genuine pinch. Even so, they’re an expensive way to borrow, and the short repayment window is tight. Borrowing again to cover a previous loan is how people get stuck. So before you commit, try our payday loan calculator to see the real cost, and read our responsible borrowing guide for cheaper alternatives. If debt already feels heavy, free, confidential help is available from Credit Counselling Canada.
Bottom line
In short, the payday loan rules by province now share one cost ceiling, while each province layers on its own protections around cancellation, repayment, and how much you can borrow. So check the rules where you live, confirm the lender is licensed, and compare your options before you sign. When you’re ready, compare licensed lenders on CashPicks to see what fits your situation.