Canada’s federal government has outlined new consumer financial protections and health care investments in Budget 2026, proposing changes to banking disclosures, credit card repayment rules and payday lending alongside additional funding for mental health services and medical research.
The measures aim to reduce unnecessary financial costs, make borrowing terms more transparent and maintain access to essential health services.
- Canada plans to require banks to provide annual statements showing the total fees customers pay on chequing and savings accounts.
- Proposed credit card reforms would prioritize repayment of high-interest balances, while payday loans would require at least 42 days for repayment.
- Budget 2026 proposes C$1.2 bn for mental health and community care and C$10 mn for spinal cord research.
Among the proposals are annual bank fee statements, changes to how credit card payments are allocated, longer payday loan repayment periods and C$1.2 bn to extend federal health care funding agreements with provinces and territories.
Canada proposes annual bank fee statements
Budget 2026 announces plans to develop regulations requiring banks to provide customers with a consolidated annual statement of fees charged on chequing and savings accounts.
The statements would show consumers how much they paid in account-related charges over the year, making it easier to compare banking products and identify potentially cheaper alternatives.
Similar disclosure requirements already exist in the European Union and the United Kingdom.
The proposed measure follows the introduction of new rules in March 2026 limiting non-sufficient funds (NSF) fees to C$10, down from charges that previously reached C$48.
According to the Financial Consumer Agency of Canada’s Bank Fee Review, NSF fees generated more than C$1 bn in consumer charges during 2025.
The agency identified these charges as the largest category of account service fees covered by its review.
While the NSF fee cap is already in force, the proposed annual disclosure requirements have not yet been implemented.
Credit card payments could prioritize high-interest debt
The federal government also intends to consult on legislative changes affecting how banks allocate credit card payments.
Under the proposal, payments exceeding the required minimum would first be applied to balances carrying the highest interest rate.
Credit cards can carry different interest rates for purchases, cash advances and balance transfers. When payments are distributed across these balances, borrowers may continue accumulating interest on their most expensive debt.
Prioritizing higher-interest balances could reduce total borrowing costs and help consumers repay outstanding debt more quickly. The proposed approach is already used in Québec.
Ottawa has not announced an implementation date, and the measure remains subject to consultations and legislative changes.
Payday loan repayment period could increase to 42 days
Budget 2026 also proposes changes to the federal rules governing payday lending. The government intends to amend the payday lending exemption under section 347.1 of the Criminal Code to introduce three requirements:
- A minimum repayment period of 42 days.
- Mandatory repayment through instalments.
- A prohibition on credit insurance charges associated with payday loans.
The changes would give borrowers more time to repay short-term loans and reduce certain additional borrowing costs.
The government points to Alberta’s existing approach as an example of more flexible repayment arrangements.
Payday loans typically serve consumers seeking short-term financing, but their repayment conditions can create financial pressure when borrowers must repay large amounts within a limited period.
Longer repayment periods may reduce that immediate pressure, although the overall cost of borrowing would still depend on the fees and terms permitted under the final rules.
Canada proposes C$1.2 bn for mental health and community care
Alongside its consumer finance proposals, Budget 2026 includes additional funding for health care services.
The government proposes allocating C$1.2 bn in fiscal 2027–28 to extend existing federal agreements with provinces and territories covering mental health, addictions, and home and community care.
The agreements would be extended until March 31, 2028. Since fiscal 2018–19, Ottawa has provided C$11 bn through bilateral arrangements supporting these services.
The proposed extension is intended to maintain funding while federal, provincial and territorial governments discuss longer-term improvements to health care delivery and financing.
The additional support could help provinces address immediate demand for mental health services and care provided outside hospitals.
However, the availability of specific services will continue to depend on provincial and territorial delivery systems.
Budget allocates C$10 mn for spinal cord research
Budget 2026 also proposes C$10 mn over two years, beginning in 2027–28, for the Praxis Spinal Cord Institute.
The funding would support research and development of treatments for serious medical conditions, including spinal cord injuries. The measure forms part of broader federal efforts to support medical innovation and improve access to treatment.
In June 2026, Canada’s Pharmaceutical and Life Sciences Sector Task Force published 39 recommendations addressing access to medicines and the competitiveness of the domestic pharmaceutical industry.
The government is reviewing those recommendations and has indicated that further announcements will follow. The budget does not establish a new medication coverage programme through this measure. It also highlights the Productivity Mega Deduction, which is intended to help health care professionals who own their practices invest in medical equipment, diagnostic technologies and other business assets.
Such investments could support additional treatment capacity and faster diagnosis, although their effect on patient waiting times will depend on how extensively providers use the incentive.
Together, the measures combine proposed financial consumer protections with targeted health care spending. Some changes, including the NSF fee cap, are already in effect, while the new banking, lending and health funding initiatives depend on further regulatory, legislative or budgetary implementation.
