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Lending money to people you know, EXPLAINED.

Plain-language guides to family and friend loans in Canada — the agreements, the rules, and what to do when things go sideways. No legalese.

Start here — the guide hubs
Suing for an unpaid loan — small claims by province
Court limits, deadlines, and filing basics for all 13 jurisdictions
Interest & tax on family loans
The 35% cap, the 3% prescribed rate, and what’s taxable
When someone won’t repay
The escalation playbook, from reminder to consumer proposal
Ready to write one? — the agreements
Family loan agreement
The all-purpose agreement for lending to family — any amount, any purpose
Promissory note (Canada)
The simpler one-signature IOU — and when it’s enough
Down payment loan
Lend toward a home purchase without mortgage or CRA surprises
Family car loan
Help buy a vehicle with the repayment terms in writing
Student loan (family)
Tuition and living costs, with repayment that starts later
Renovation loan
Fund a family member’s renovation with clear terms
Business startup loan
Back a family business without becoming an accidental partner
Parent to child loan
Lending to your kids while keeping it fair for everyone

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Recovering a loan in court
The legal playbook

How to Lend Money to a Family Member Legally in Canada

The complete legal walkthrough: the two presumptions working against you, lawful interest under the Criminal Code, valid e-signatures, and the limitation window — with the statutes and cases that decide it.

Small claims · Ontario

Suing for an Unpaid Loan in Ontario Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Alberta

Suing for an Unpaid Loan in Alberta Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · BC

Suing for an Unpaid Loan in BC Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Saskatchewan

Suing for an Unpaid Loan in Saskatchewan Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Manitoba

Suing for an Unpaid Loan in Manitoba Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Quebec

Suing for an Unpaid Loan in Quebec Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Nova Scotia

Suing for an Unpaid Loan in Nova Scotia Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · New Brunswick

Suing for an Unpaid Loan in New Brunswick Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · PEI

Suing for an Unpaid Loan in PEI Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Newfoundland & Labrador

Suing for an Unpaid Loan in Newfoundland & Labrador Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Yukon

Suing for an Unpaid Loan in Yukon Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Northwest Territories

Suing for an Unpaid Loan in Northwest Territories Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Small claims · Nunavut

Suing for an Unpaid Loan in Nunavut Small Claims Court

The limit, the steps, the deadline, and why a written agreement makes your case.

Start here
After signing · lenders

You've Signed — What Now? A Lender's Q&A

What to do now (almost nothing), what the CRA needs, and the calm playbook if a payment doesn't arrive.

After signing · borrowers

You've Signed — What Now? Five Borrower Habits

Automate it today, reference every transfer, glance quarterly — the habits that make family loans invisible.

Security · How it works

Document Integrity: How LendRight Seals an Agreement Against Fraud

Every agreement gets a SHA-256 fingerprint you can check yourself at verify.trylendright.com. What the seal is, how it makes a forged or altered loan agreement fall apart on sight, and why no template site or AI can fake it.

The full picture

What Is LendRight? Secure, Verifiable Family Loans

What it is, how the signing works, and how the SHA-256 seal, Certificate of Completion, and public verification make a LendRight agreement safer than a free template — for a family loan in Canada.

Template guide

Family Loan Agreement Template (Canada): Free, Enforceable, Signed in Minutes

What a usable template actually contains, the three ways to get one — static download, lawyer, or guided tool — and an honest cost-and-time comparison so you pick the one that holds up.

Relationship guide

Personal Loan Agreement for Family (Canada): Formal Without the Cold

A contract with your own brother feels cold — but it's what keeps the loan a loan and the family intact. Why formality protects both sides, what to put in it, and how to make one in minutes.

Recovering a loan

My Friend Says the Loan Was a Gift — Can I Get It Back?

They've cooled off and now call your loan a gift. Who has to prove what in Canada — and how to recover your money.

Recovering a loan

A Family Member Says My Loan Was a Gift — Can I Get It Back?

The law often starts on your side in families. How Canadian courts decide, and how to get your money back.

Gift, divorce & recovery

I Gave My Child Money for a House — Can I Get It Back if They Divorce?

You helped with a deposit and now they're separating. Whether it's a gift or a loan decides everything — with real Canadian cases.

Asking parents

How to Ask Parents for Money (Without It Getting Weird)

What to say, how to frame it as a loan, and how a simple written agreement keeps money from straining the relationship.

Borrowing well

How to Borrow Money From Family the Right Way

Agree on terms, decide loan vs gift, and put it in writing so it never comes between you. A borrower's guide.

Lending to your child

Should I Lend Money to My Child?

How to decide, whether to make it a loan or a gift, and how a simple written agreement protects everyone.

Under the hood

What LendRight Actually Checks (That Templates and AI Miss)

Free templates are US-frozen; AI has no canonical copy or working math. The specific legal checks behind the $29 — and what breaks without them.

Protect both

How to Protect Yourself When Lending to Family — Without Damaging the Relationship

Set clear terms, decide loan vs gift, get it in writing — framed as care, not distrust. The calm, practical way to do both.

Decision guide

Gift or Loan? How to Decide Before You Transfer a Dollar

The question that decides your taxes, your estate, and whether you see the money again. A clear framework, the test courts use, and a free 60-second tool.

Step by step

How to Write a Family Loan Agreement in Canada

The exact clauses to include, the Canadian rules that matter, and the fastest way to make one both people can sign.

The awkward ask

Is It Okay to Ask Family to Sign a Loan Agreement?

Yes — and it's not rude. How to ask a relative to sign without it ever feeling like distrust.

The complete guide

Family Loan Agreement in Canada: The Complete Guide

Everything that makes a family loan agreement valid in Canada — and the four mistakes that quietly make them unenforceable.

Clause by clause

Loan Agreement Between Family Members in Canada: What to Include + Example

The whole agreement annotated against a worked $40,000 example — and the federal rules that quietly rewrite bad wording.

The checklist

What Does a Personal Loan Agreement Need to Include in Canada?

The complete list of clauses every private loan agreement should have — and what you can safely skip.

Note vs agreement

Is a Promissory Note Enough for a Family Loan?

A note is binding — but it's a one-sided IOU that leaves five gaps. Why a full loan agreement is the safer default, with a real case.

Explainer

Promissory Note vs Loan Agreement: What's the Difference?

One is a promise, the other a contract. A plain side-by-side of what each is, who signs, and which suits a family loan.

Free templates

Free Family Loan Agreement Template — and What It Misses

Free templates are usually written for the US. Here are the Canadian gaps that matter, and when "free" is good enough.

Interest & tax
When things go wrong
Real court cases

Why a Family Loan Must Be in Writing — and Enforced

Canadian courts have turned an unenforced loan into nothing, and a disputed "gift" into a debt. Real cases on why the paperwork decides everything.

Unpaid loans

What to Do When Family Won't Pay Back a Loan

A calm, realistic path — from a written reminder to small claims court — and the limitation clock you can't ignore.

Unpaid loans · Evidence

Family Member Won't Repay a Loan: What Are My Options?

Can you sue? Is a text or e-transfer enough proof with no written contract? Your options — with a real case where digital evidence won.

Consumer proposals

My Friend Filed a Consumer Proposal and Owes Me Money — Will I Get Paid?

A proposal doesn't erase the debt — it converts it into a smaller, court-binding payout. How to file a Proof of Claim, how much creditors recover, and the deadline you can't miss.

Consumer proposals

My Friend Says They Filed a Consumer Proposal — How Can I Check If It's True?

It's a public filing, not a private claim. How to verify it through the OSB records search and the trustee's notice — and what your next move is either way.

Consumer proposals

I Have a Promissory Note, but the Borrower Filed a Consumer Proposal — Am I Protected?

A note proves the debt but doesn't rank it. Secured vs unsecured, why it's strong proof for your claim, and the co-signer who can still be pursued.

Verbal loans

Is a Verbal Loan Agreement Legally Binding in Canada?

Yes — but proving the terms is the hard part. What makes a spoken family loan actually enforceable.

Estates & wills
Compare your options

Canada-wide

The rules that apply everywhere — what makes an agreement valid, gift vs loan, interest, and tax.

By province

Ontario
British Columbia
Alberta
Manitoba
Nova Scotia
Saskatchewan
Quebec
New Brunswick
Prince Edward Island
Newfoundland & Labrador
Yukon
Northwest Territories
Nunavut

Skip the worry. Put it in writing.

A clear agreement built for your province, in about four minutes. Free to draft.

Create my loan agreement