Criminal rate of interest in Canada
Since 1 January 2025 the criminal rate of interest in Canada is 35% APR, down from 48%. This is the ceiling on the cost of credit for most consumer loans.
What the criminal rate is
The criminal rate of interest is the maximum cost of credit that a lender may charge. Charging above it is a criminal offence under section 347 of the Criminal Code. Since 1 January 2025 the rate is 35% APR, reduced from 48%.
What it applies to
- Most consumer credit agreements, including personal loans and lines of credit.
- It is expressed as an annual percentage rate, which means fees that form part of the cost of credit are included in the calculation.
- Payday loans in provinces with an approved regime are dealt with under separate regulations (see the payday loan cost cap reference).
What it does not mean
A rate below the criminal ceiling is not automatically a good deal. A loan at 34% APR is still very expensive. The criminal rate is a legal limit, not a recommendation.
| Measure | Value | Effective |
|---|---|---|
| Criminal rate of interest | 35% APR | 1 January 2025 |
| Previous rate | 48% APR | Before 1 January 2025 |
Source: Criminal Code, s. 347 — Criminal interest rate — Government of Canada — Justice Laws. Retrieved 2026-09-16.
Sources
- Criminal Code, s. 347 — Criminal interest rate — Government of Canada — Justice Laws
- Criminal Interest Rate Regulations: SOR/2024-114 — Government of Canada (Canada Gazette, Part II)
Frequently asked questions
What is the maximum legal interest rate in Canada?
The criminal rate of interest is 35% APR as of 1 January 2025. Payday loans in provinces with a payday regime are governed by a separate $14 per $100 cap.
Does the criminal rate include fees?
The rate is expressed as an annual percentage rate, so fees that are part of the cost of credit are included. The precise treatment depends on the agreement and the regulations.
What happens if a lender charges above the criminal rate?
Charging above the criminal rate is an offence under the Criminal Code. If you believe you have been charged an unlawful rate, seek legal advice.
Important legal information
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