As of January 1, 2025, the maximum legal interest rate in Canada is an Annual Percentage Rate (APR) of 35%. Charging an effective annual interest rate exceeding this limit is a criminal offense under Section 347 of the Criminal Code. This cap applies to most credit products, including loans, lines of credit, and auto loans.
The Criminal Code makes it an offence to: (1) enter into an agreement or arrangement to receive interest at a rate exceeding 60 per cent; and, (2) actually receive interest at a rate exceeding 60 per cent.
The criminal rate of interest makes it illegal for lenders to charge an interest rate of more than 60%. This rule applies to most lending products in Canada, including: Installment loans. Lines of credit.
But yeah, so big picture California says 10%, that's what you can charge on a loan and if you exceed 10%, you have a usury problem.
The Budget Implementation Act, 2023, No. 1, amended section 347 of the Criminal Code to lower the criminal interest rate (also referred to as “the criminal rate”) to 35% APR.
As of January 1, 2025, the criminal interest rate was reduced to a cap of 35% annual percentage rate (APR). Prior to these amendments, the criminal rate of interest was capped at 60% effective annual rate (EAR), which is approximately 48% APR.
There is no federal law that sets maximum interest rates on all consumer loans; rather, rates are restricted at the state level. This means usury laws vary between states.
Yes, charging a 3% credit card fee (surcharge) is generally legal in most U.S. states and follows card network rules (like Visa's 3% cap), but it depends heavily on your location and requires strict adherence to rules, such as not surcharging debit cards, capping it at your actual processing cost (not to exceed 3% for Visa/4% for Mastercard), and providing clear customer notification. Some states (like Connecticut, Massachusetts, Texas) may have their own bans or restrictions, so it's crucial to check your specific state laws.
Yes, businesses in Canada can charge late fees on overdue invoices either as a fixed penalty fee or by adding interest at a reasonable level. As the business charging a late fee, the onus is on you to ensure that the amount is “reasonable”.
On December 15, 2025, the Government of Canada passed Bill C-3, An Act to amend the Citizenship Act. This legislation changes the first-generation limit to citizenship by descent. On this page, we explain what this change means, how to check if you're affected, and what you need to do before travelling to Canada.
Effective as of January 1, 2025, the criminal rate of interest specified in section 347 of the Criminal Code (Canada) (the Criminal Code) was reduced to an annual percentage rate (APR) that exceeds 35%. Prior to the amendments, the criminal rate of interest was an effective annual rate (EAR) that exceeded 60%.
The interest you can charge if another business is late paying for goods or a service is 'statutory interest' – this is 8% plus the Bank of England base rate for business-to-business transactions. You cannot claim statutory interest if there's a different rate of interest in a contract.
Are 40-Year Mortgages Allowed in Canada? Yes, 40-year mortgages are allowed in Canada. However, they are not as common as mortgages with a shorter amortization and are only offered by select lenders. This is because longer amortization mortgages are considered riskier for lenders.
The most common fees for accepting credit card payments are transaction fees, which are usually a percentage of the payment plus a fixed amount per transaction. You can pass on credit card processing fees to clients by adding a small percentage or flat fee to the invoice to cover those costs.
Yes. U.S. merchants may assess a surcharge on credit card purchases that does not exceed the merchant discount rate for the applicable credit card surcharged*.
There's no federal regulation on the maximum interest rate your issuer can charge you, though each state has its own approach to limiting interest rates. State usury laws often dictate the highest interest rate that can be charged on loans, but these often don't apply to credit cards.
The maximum rate for consumer loans is capped at 12% per annum. Connecticut sets the legal interest rate at 8% and the general usury limit at 12%.
Canada's 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.