Loan repayment dates: fitting them into your budget

The printed rate is not the only cost. If the withdrawal lands before payday, the account overdraws, the institution charges a returned-item fee, and the lender may add its own fees. The FCAC describes pre-authorised debits: money leaves on the agreed date, whether or not the deposit has arrived.

Personal-loan dates do not follow QPP, the Canada Child Benefit, or another public programme. For a pension, see CPP, OAS and QPP calendars. For tax and benefits, see tax dates.

Three different clocks

• Pay: weekly, every two weeks or monthly.
• Benefits: CPP, OAS, QPP, CCB, Family Allowance, each with its own issuer.
• The loan: contract dates, often a pre-authorised debit.

Lining up all three avoids fees. A payment the day after the deposit can cost less, in returned-item fees, than a slightly lower rate that hits three days too early. Use a loan calculator for cost of borrowing, then drop each instalment on the real calendar.

Frequencies at NovaCash

The frequencies offered are weekly, every two weeks, or monthly. Every loan is open: early repayment without penalty. Monthly membership fees apply for the life of the loan; the amount appears in the offer. Review uses bank verification, without a credit-bureau enquiry. If a payment will not clear, contact the lender before it returns. See what happens after a missed payment.

Do not borrow against a child-tax-credit deposit: that income is not eligible. Do not borrow against a pension that has not yet landed either. Ability to repay is judged on the account.

Returned-item fees and interest

Interest runs under the contract. NSF and returned-item fees stack per event. One bounce can cost more, that week, than several days of interest. That is why the date should match payday.

Frequently asked questions

Can I pick any date?

At NovaCash you choose one of the frequencies offered. The exact date is confirmed in the offer. It is not the QPP calendar.

Does a pension deposit automatically pay the loan?

No. Those are two streams. Funds must be in the account on the withdrawal day.

What if payday is late?

Call the lender before the withdrawal, at (877) 431-4134.