Make an Ontario loan agreement for a loan between family or friends — built for Ontario’s rules, not a generic form. Free to draft, both of you e-sign on your phones, done in minutes.
A loan between family or friends is a binding contract in Ontario when it's clear enough to enforce. Ontario-specific points worth knowing:
LendRight builds all of this as you answer a few plain-language questions, with Ontario set as the governing province.
Who's lending, how much, and how it's paid back. The agreement writes itself as you type.
The borrower gets a secure signing link — they can sign from their phone whenever they're ready.
A clear, signed Ontario loan agreement — so the loan stays a loan and the relationship stays whole.
Free templates and generic legal-form sites give you a one-size-fits-all document. The trouble is the things that make a family loan agreement unenforceable are invisible unless you know Canadian statute — an interest rate that quietly breaks the criminal cap, missing repayment terms, no proper signatures. LendRight is purpose-built for the family/friend case and flags these for you. If you want a broad library of every document type, a general service like LawDepot makes sense — but for a family loan done right, a focused tool is faster and simpler.
Free to draft. Both sign on your phones. Done in minutes.
Create my loan agreement →Yes. A loan between family or friends is a binding contract in Ontario if it identifies the parties, the amount, and the repayment terms, and both sides agree. A written, signed agreement is your evidence in Ontario Small Claims Court if needed.
Generally two years from when the loan became due, or from the last payment or written acknowledgement of the debt. A signed, dated agreement makes that timeline clear.
The effective annual rate must stay under the federal criminal interest cap of 35% APR. Many families use the CRA prescribed rate to avoid tax complications, or lend interest-free.
No, for an ordinary personal loan. Complex situations — loans secured against property, or large business loans — are worth a lawyer's review.
Who runs this: LendRight is a product of RULE8 Inc.
Last reviewed: July 3, 2026 by the LendRight Editorial Team.
Sources: Ontario: the Limitations Act, 2002 (two-year basic period); Small Claims Court $50,000 limit; the Electronic Commerce Act, 2000; Criminal Code s. 347 (35% APR cap); 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. Get a lawyer for loans secured against property, business or investment loans, or anything touching a separation or an estate.
Electronic signing: e-signatures are recognized for ordinary contracts in Ontario; 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.
LendRight provides self-help document automation, not legal advice, and no lawyer-client relationship is created. For complex situations, consult a licensed lawyer in your province.