Payday loan rates and fees in Canada

The fee-per-$100 model

Unlike traditional loans that charge an annual interest rate, Canadian payday loans use a flat fee per $100 borrowed. For example, if the provincial maximum is $15 per $100 and you borrow $500, the maximum fee would be $75 — meaning your total repayment would be $575.

This flat-fee structure makes it easier to calculate the dollar cost of a payday loan. However, when converted to an effective annual interest rate, payday loans are extremely expensive — which is why they should be treated as a last resort for short-term emergencies, not as a regular borrowing tool.

Provincial cost caps

Each province sets its own maximum cost of borrowing. These caps are reviewed and updated periodically by provincial regulators. Because rates change, we recommend checking with your provincial consumer protection body for the current cap. Here's the general landscape:

• Alberta, British Columbia, and some Atlantic provinces have set lower caps in recent years
• Ontario has a defined cap that has been adjusted over time
• Quebec effectively restricts traditional payday lending through its interest rate framework
• Prairie and Atlantic provinces have varying limits — see individual province pages

Other potential charges

Late payment fees

If you miss your repayment date, the lender may charge additional fees — the maximum is set by provincial regulation. Late payments may also be reported to credit bureaus.

NSF (non-sufficient funds) fees

If the lender attempts to collect repayment and your bank account has insufficient funds, you may be charged an NSF fee by both the lender and your bank.

Extended payment plan fees

Most provinces require lenders to offer an extended payment plan under certain conditions. In many cases, these plans cannot include additional fees, but terms vary by province.