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: September 30, 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.
It depends on whether you expect to be repaid and how much a future dispute would hurt. If you are genuinely fine never seeing the money again and there is little chance of a dispute, a gift is cleanest. If you expect repayment, the amount is significant, or a divorce, estate, or business issue could arise, put it in a written loan agreement. When expectations are unclear or conditional, a hybrid — documented in writing — usually fits best.
Writing it down protects the relationship, not just the money. A short signed record removes the most common cause of family fallout: two people remembering the same handover differently. It also matters for taxes, estates, and divorce, where an undocumented transfer can be treated very differently from what you intended.
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.