Which Province is The Easiest to Borrow in?

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Which Province is The Easiest to Borrow in?

Written by Mark Gregorski
Fact-checked by Caitlin Wood

Which Province is The Easiest to Borrow in?


Borrower Borrowing Loans

Are you on the lookout for a lender to help you finance a major project, such as a home renovation? Or perhaps you simply need a little bit of extra cash to pay for your expenses until your next paycheque arrives? When you’re low on money but have payment obligations to contend with, a loan is often necessary. 

It’s in your best interest to secure the cheapest loan possible. However, sometimes this isn’t possible, and you may have to rely on non-traditional lending sources.

Why is it Easier For Certain Consumers to Borrow Money?

Some people have no issues getting approved for credit, while others struggle constantly. The former category includes those who possess a high credit score and solid income stream, which lenders view favourably. If this describes you, you’ll have plenty of options when it comes to borrowing. However, if you lack these attributes, obtaining a loan can be a challenge.

Find out what bad credit lenders look at to assess loan eligibility.

Which Provinces Have The Best Lending Laws

Lending laws are federally regulated, so it doesn’t matter where you obtain your loan. But, certain types of loans are regulated at the provincial level, such as payday loans. 

Some of the areas payday loans regulations cover include:

  • Interest rate: Lenders are limited to what rates they can charge you.
  • Cooling-off period: This refers to the period during which you can cancel your loan without incurring a fee.
  • Non-sufficient funds: These are fees lenders charge you when you don’t have enough money in your account to cover a transaction.
  • Rollover: Rolling over a payday loan means you can extend what you owe into a second payday loan. 

Below is an overview of payday loan regulations by province.

Maximum Interest Rate for a $100 LoanCooling-off Period Maximum Penalty for Non-sufficient FundsRollovers Allowed?
Alberta152 business days$25No
British Columbia152 business days$20No
Manitoba1748 hours, excluding Sundays and holidays$20Yes
New Brunswick1548 hours, excluding Sundays and holidays$20No
Newfoundland and Labrador212 business days$20Yes
Nova Scotia19Next business day (2 days for online payday loans)$40No
Ontario152 business daysN/ANo
Prince Edward Island252 business daysN/AYes
Saskatchewan17Next business day$25No

As you can see, the provinces with the best payday loan laws are British Columbia and New Brunswick, followed by Alberta and Ontario. These provinces offer the most consumer protection at the lowest cost. 

Check out the difference between a payday loan and a personal loan.

What to Consider When Choosing The Right Loan

Here are some factors you should consider when evaluating your loan options:

  • The loan’s total cost: This is the amount you will spend to pay off the loan in full. It includes the principal, interest, and fees.
  • Interest and fees: Ensure you can manage the interest rate and any associated fees.
  • Loan term: Long-term loans result in lower payments, while short-term loans come with high payments.
  • Affordability: Can you pay back your loan without sacrificing other living expenses?
  • Lender reputation: Conduct research to ensure your lender is trustworthy and transparent.

Where is The Easiest Place to Get a Loan?

Seeking out an alternative lender is a viable option for quick financing. Alternative lenders specialize in lending to borrowers with bad credit. If your finances are in less than stellar shape, you’ll likely only qualify for a loan through an alternative lender. Some of the factors they consider when reviewing your applications include your:

What to do if You Can’t Get Approved For a Loan in Your Province

Lenders must obey the same laws regardless of where they operate, so you can safely work with a lender in another province. However, you may still face the same hurdles when attempting to secure a loan, which is why working on improving your finances is a superior option. You can start the process by:

Once you get your finances in good order, more choices will become available to you.

Bottom Line

Having too many options can sometimes be overwhelming, but the more, the better when it comes to borrowing money. Having access to affordable loans can save you a sizable amount in interest and fees, which is why keeping your finances in good standing is so crucial. Doing so will help you avoid those costly payday loans.

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