The payday loan rules by province decide three things for you: how much a loan can cost, how much you can borrow, and what you can do if you change your mind. Since January 1, 2025, one federal cost cap applies across Canada. Each province then adds its own protections on top, so the details depend on where you live.
This guide covers the national rule first, then the provinces with the most specific laws: Ontario, British Columbia, Alberta and Manitoba. The last sections cover the rest of the country and how to check that a lender is licensed.
The rule that applies across Canada
Federal regulations cap the cost of a payday loan at $14 for every $100 borrowed. That figure includes interest and every fee combined. Before 2025, provinces set their own maximums, which ranged up to $17 per $100 in some places. The Financial Consumer Agency of Canada explains the cap and what counts toward it.
Two more limits come with the definition of a payday loan in federal law. The loan can be no more than $1,500, and the term can be no longer than 62 days. So the most a $300 loan can cost is $42, and the most a $500 loan can cost is $70.
You also need to be the age of majority where you live. That is 18 in Alberta, Manitoba, Ontario, PEI and Saskatchewan, and 19 in British Columbia, New Brunswick, Nova Scotia, Newfoundland and Labrador and the three territories.
Payday loan rules by province at a glance
The cost cap is now the same wherever payday loans are offered. The differences are in borrowing limits, cancellation periods and what happens when someone borrows repeatedly.
| Province | Maximum cost | Borrowing limit | Notable extra rule |
|---|---|---|---|
| Ontario | $14 per $100 | Up to 50% of net pay | Extended payment plan on a third loan within 63 days |
| British Columbia | $14 per $100 | Up to 50% of net pay | Instalment plan on a third loan within 62 days |
| Alberta | $14 per $100 | $1,500 | Repayment in instalments over at least 42 days |
| Manitoba | $14 per $100 | Up to 30% of net pay | Cancel within 48 hours of signing |
| New Brunswick | $14 per $100 | Up to 30% of net pay | Licensing and written disclosure |
| Quebec | Not offered | None | Provincial credit rules keep payday lenders out |
Limits can change, so confirm them with your provincial consumer protection office before you sign.
Payday loan rules in Ontario
Ontario caps a payday loan at 50% of your net pay, inside the $1,500 federal limit. A lender can’t roll a loan over into a new one, and you can’t take a second loan from the same lender while the first is still open. You have two business days to cancel without paying the fee.
Ontario also has a rule for repeat borrowing. If you take a third loan from the same lender within 63 days, the lender has to offer you an extended payment plan so you can repay over several pay periods. The Ontario government’s payday loan page lists your rights and how to file a complaint.
Payday loan rules in British Columbia
BC uses the same $14 per $100 cap and the same 50% of net pay limit as Ontario. You can cancel within two business days at no cost, even after you’ve received the money, as long as you return the principal.
If you take a third loan within 62 days, the lender has to offer an instalment plan. Rollovers are banned. Every lender must hold a licence from Consumer Protection BC, and you can search its licensee list before you apply.
Payday loan rules in Alberta
Alberta’s rules focus on how you repay. A payday loan has to be paid back in instalments rather than one lump sum, and you get at least 42 days to do it. That spreads the cost across more than one paycheque, which helps if your budget is tight.
You can cancel within two business days, and lenders can’t charge for that. The Office of Consumer Affairs keeps links to every provincial regulator, including Alberta’s.
Payday loan rules in Manitoba
Manitoba has the tightest borrowing limit in this list: no more than 30% of your net pay. You can cancel within 48 hours of signing. Your agreement has to show every charge, the total cost of credit, the annual percentage rate and the due date, so you can check the numbers before you commit.
The Manitoba Consumer Protection Office publishes the full rules.
The rest of Canada
Outside those four, the payday loan rules in each province focus on licensing and disclosure. Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador all require payday lenders to be licensed, and they all require written disclosure of the cost. New Brunswick also limits a loan to 30% of net pay. Rules in the three territories are different, so check with the territorial consumer affairs office before you borrow.
Payday loans are not available in Quebec. The province limits the cost of credit to a level that payday lenders don’t operate under, so residents there usually look at credit union loans or instalment loans.
How to check that a lender is licensed
The payday loan rules in your province only protect you if the lender follows them, and only licensed lenders do. Before you share any details:
- Look for the provincial licence number on the lender’s website.
- Search that number on your regulator’s website.
- Make sure the quoted cost is $14 per $100 or less, with nothing added on top.
A lender that promises approval to everyone or asks for a fee before sending the loan is breaking the rules. Advance fees for loans are illegal in Canada. Our guide to no refusal payday loans explains the warning signs.
Before you apply
A payday loan is an expensive way to cover a short gap, and borrowing again to repay the last loan is how the cost builds up. Once you know the payday loan rules for your province, work out the exact figure with the payday loan calculator, and read the responsible borrowing guide for cheaper options. If you decide a payday loan fits, you can check your eligibility in about five minutes. If debt already feels heavy, Credit Counselling Canada offers free, confidential help.
