Payday Loans in the Northwest Territories

Why payday loans aren't available in the Northwest Territories

Payday loans can only cost $14 per $100 in provinces that have their own payday loan laws and a federal designation to go with them. Nine provinces have one. the Northwest Territories doesn't have a territorial payday loan licensing system, so lenders there can't use the payday loan exemption.

Without that exemption, any loan to a the Northwest Territories resident falls under the federal criminal interest rate, which since January 1, 2025 is 35% a year. A typical two-week payday loan at $14 per $100 works out to roughly 365% a year, so it can't legally be offered. That's why CCFD doesn't arrange payday loans for residents of the Northwest Territories.

Be careful with lenders that say they serve you

If a website offers fast payday loans to the Northwest Territories residents, be cautious. A lender that charges payday-style fees to someone in the Northwest Territories is charging more than Canadian law allows. Other red flags:

• It asks for a fee, gift cards or cryptocurrency before sending money.
• It can't name the province or territory that licenses it.
• It promises guaranteed approval or "no refusal".
• It pressures you to sign quickly or won't show the total cost in writing.

If you've already borrowed from a lender like this, keep every document and contact the Financial Consumer Agency of Canada for guidance.

Lower-cost options for the Northwest Territories residents

• Your bank or credit union: ask about overdraft protection, a small personal loan or a line of credit. They're capped at the 35% legal rate and usually far lower.
• Payment arrangements: utilities, phone companies and landlords often agree to a short delay or split payment if you call before a bill is overdue.
• Employer pay advance: some employers will advance part of wages you've already earned.
• Free credit counselling: non-profit agencies listed by Credit Counselling Canada offer counselling by phone anywhere in the country.
• NWT Income Assistance: emergency help may be available for urgent needs through the Government of the Northwest Territories.

If you move to a province

Payday loans follow the borrower's home province. If you move to a province that licenses payday lending, such as Alberta or British Columbia, you'll need an address and bank account there, and the province's rules will apply. See our province-by-province guide for details.

Frequently asked questions