Students apply for loans where they (or if dependents, their parents) live. So Ontario grants generally go to Ontario domiciled students, even if they are going to school in BC. And vice versa.
BUT -- I am not sure how it all works, in practice, because I know that UBC has one consolidated loan application, that also looks up for private UBC donor bursaries at the same time.
Most of the loans are going to masters students, or independent students, due to income qualifications, anyway, where you are most likely to be living in the same province as where you are going to school.