Family loan repayment records in Canada

A family loan can be repaid perfectly and still leave two people with different memories of the balance. A small record kept as you go is much easier than reconstructing three years of transfers later.

This guide gives you a practical repayment log, a cash-receipt example and a closing message. It is for an ordinary private loan between people in Canada. If you are still agreeing the terms, start with how to write a family loan agreement.

Keep the agreement, the advance and the repayments together

Think of your loan folder as three linked records. The agreement says what you agreed. The advance record shows when the borrower received the money. The repayment log shows what came back and how the balance changed.

• Save the signed agreement and any later changes you both accepted.
• Keep the bank record for the original advance, including its date, amount and recipient.
• Record each repayment and keep the corresponding bank confirmation or receipt.
• Keep relevant messages about missed payments, corrections or a changed schedule.

A transfer record is useful, but it may not explain whether money was a loan, a gift or a payment for something else. That is why the agreement and the payment reference belong beside it. Our gift-or-loan guide explains the distinction.

What proof should you keep for an Interac e-Transfer?

Save the transaction details from your bank and the confirmation that the payment was completed or deposited. Keep the date, amount, sender, recipient, transaction reference and any message attached to the transfer. A screenshot of a payment being prepared is not the same as confirmation that it completed.

Interac advises users to retain transaction communications and says it may not be able to reproduce them later. Depending on the sender's settings, a notification may come from the financial institution rather than Interac itself. See Interac's transaction-record terms, section 1.12.

Use a consistent message such as “Loan LR-EXAMPLE, November repayment”. That is an illustration, not a real agreement reference. Leave dates of birth, full addresses and other unnecessary personal details out of payment messages.

If a transfer is cancelled, returned or corrected, keep that record too. Enter the payment in your log only when you have checked what actually happened in the account.

A simple family-loan repayment log

A spreadsheet, notebook or shared document can work. The important part is that both people can understand it and the entries match the underlying records.

Also record the agreed due date, payment method and any note explaining a difference. A late payment should show the date it arrived, not a rewritten date that makes it look on time. For an interest-bearing loan, follow the agreement's calculation and payment-allocation rules; do not subtract the entire instalment from principal if some pays interest.

Keep an occasional dated copy of the log so a correction does not erase its history. A short message confirming a disputed entry is more useful than silently changing the number.

What should a cash repayment receipt say?

For cash, prepare the receipt when the lender receives the money. Give the borrower a copy and keep one with the loan records. Include both names, the agreement reference, the actual payment date, the amount and currency, and the balance after applying it under the agreement.

This is a record-keeping example, not a replacement loan agreement. Only use figures both people have checked. Do not describe a part payment as a final settlement, and do not sign for money that has not been received.

When the loan is repaid, confirm it in writing

After the last payment clears, compare the log with the agreement. Check principal, any interest and any other amount actually due. If the balance is zero, the lender can send a clear confirmation instead of leaving the borrower to guess.

Use this wording only where the full balance has actually been paid. Accepting less than the balance, forgiving part of a debt, or releasing security is a different situation and may need tailored documentation and advice. Keep the original signed agreement rather than editing it to say “paid”.

How long should you keep the records?

Keep the complete file while money is outstanding and after repayment if it may still be relevant to a dispute, estate or tax matter. There is no single retention period in this article that resolves every provincial and personal situation.

For records supporting a tax return, the CRA's general rule is six years from the end of the last tax year they relate to, with exceptions. That tax rule is not a universal deadline for destroying loan documents or bringing a court claim. See the CRA's Keeping Records guidance. If you charge interest, also read our family-loan interest and tax guide.

Store an accessible backup. Keep originals where you have them; redact unrelated account activity from copies you share. Ontario's small-claims guidance, for example, asks claimants to provide supporting documents and keep originals for trial. See the Ontario guide to making a claim. Other provinces have their own procedures.

What LendRight records, and what you record yourself

LendRight prepares the agreement and records its signing. It does not connect to your bank account or automatically confirm repayments between you and the borrower. A signed PDF or completion certificate shows the agreement and signing record; it does not show that every scheduled payment arrived.

Save your signed documents, then keep the repayment evidence alongside them. The lender's after-signing guide and borrower's after-signing guide explain the next steps. If the records no longer agree, compare them together before assuming bad faith. If repayment has stopped, use the unpaid family-loan options guide and get advice promptly about any deadline.