Most loans between family or friends are simple enough to handle yourself. A few aren’t. Answer seven quick questions to see whether your situation looks straightforward, is worth a quick professional check, or deserves advice before you sign.
A personal loan between two individuals, on good terms, unsecured, in one province. For many situations like this, people choose to document the terms themselves with a clear, signed agreement.
Mostly simple, with one wrinkle — a guarantor, a larger sum, different provinces, or Quebec. Draft it, then have a professional glance at the one point before you sign.
Property as security, a business borrower, tax or estate planning, a separation, money crossing borders, or an existing dispute. These generally deserve professional advice before anything is signed — a lawyer or, in Quebec, a notary for legal questions; an accountant for tax.
LendRight is built for the common case: two people who trust each other writing down a simple loan so a good relationship stays good. When a situation is genuinely complex — a charge on someone’s home, a business deal, tax structuring, an estate, or a relationship already under strain — the honest answer is that a document alone won’t protect you, and pretending otherwise would do you a disservice. This check errs on the side of caution: if anything raises a flag, it points you to the right kind of professional rather than waving you through.
If your loan turns out to be the straightforward kind, our guides on how to write a family loan agreement and lending money to family legally in Canada walk through what to include. For the gift-versus-loan question that often comes up with a family down payment, the wording matters more than people expect.
Who runs this: LendRight is a product of RULE8 Inc.
Last reviewed: July 3, 2026 by the LendRight Editorial Team.
Sources: Criminal Code s. 347 (35% APR criminal interest cap); provincial limitation and electronic-commerce legislation (varies by province); CRA prescribed rate (3% for 2026).
Scope: self-help document automation for ordinary personal loans between individuals — not legal or tax advice, and no lawyer-client relationship is created. Quebec is not yet supported. Get a lawyer for secured or business loans, separations, estates, or disputed intentions.
Electronic signing: e-signatures are recognized for ordinary contracts across supported provinces; each agreement is a locked PDF with a tamper-evident certificate of signers and timestamps. A signed agreement is strong evidence — enforceability always depends on the facts of the loan.
This tool gives general information to help you think it through — it isn’t legal, tax, or financial advice, and using it doesn’t create a lawyer–client relationship. For your specific situation, a licensed professional in your province is the right call.