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Personal Loan Agreement (Ontario)
Free template from Minute Notary, an Ontario notary office. A two-party personal loan agreement for Ontario, signed by both the lender and the borrower, setting out the amount, purpose, interest, repayment, late payments, security and default.
No charge until a notary signs it
Word files are editable. Review any changes carefully before signing or uploading.
Also known as
- Loan agreement template
- Family loan agreement
- Private loan agreement
+2 more names
- Money lending agreement
- Loan contract between individuals
The blanks fill themselves in as you type.
- Scope
- General template, not legal advice
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- PDF + editable Word downloads
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Personal Loan Agreement (Ontario)
A compact preview of this template
01Lender and borrower
Lender's full legal name
Amount of the loan
How will the loan be repaid?
PERSONAL LOAN AGREEMENT
This agreement is made between:
The lender: ______, of ______
The borrower: ______, of ______
The lender and the borrower agree as follows:
Loan. The lender will lend the borrower ______ in Canadian dollars (the “loan”) and will advance it on ______ by ______.
Purpose. The borrower will use the loan for this purpose: ______.
Interest. The loan bears ______.
Repayment. The borrower will repay the loan ______.
Prepayment. The borrower may repay all or part of the loan early, at any time, without penalty.
Late payment. A payment is late if it is not received within ______ days after its due date.
Security. The loan is ______.
Default. The borrower is in default if a payment is more than ______ days late, if the borrower breaks any other promise in this agreement, or if the borrower becomes bankrupt or insolvent. On default, the lender may give the borrower written notice that the whole unpaid balance, with interest, is due at once.
Notices. A notice under this agreement is given in writing to the other party at the address above, or by email to an address that party has given in writing.
Entire agreement. This agreement is the whole agreement between the lender and the borrower about the loan. Any change must be in writing and signed by both of them.
Governing law. This agreement is governed by the laws of the Province of Ontario and the federal laws of Canada that apply in Ontario.
Signed by the lender and the borrower on the dates written below.
______________________________ | ______________________________ |
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How it works
Prepare your document, one step at a time.
Answer the questions, choose the download you need, then continue with signing or booking.
Overview
About this document
- 01
What is a personal loan agreement?
It is a contract between a lender and a borrower who are individuals, not a bank. Both sign it, and each keeps a signed copy.
It can cover what a promissory note leaves out: the purpose of the loan, a schedule of payments, late charges, property pledged as security, and what happens on default.
- 02
When you need one
Consider a loan agreement when:
- You lend a significant sum to a relative or friend, such as for a car, tuition or a down payment.
- Repayment will take months or years on a set schedule.
- You want the loan secured by property, such as a vehicle.
- You want both parties' obligations in writing, not only the borrower's promise.
- 03
What to include
Have these ready:
- Both parties' full names and addresses.
- The amount, the date and method of the advance, and the purpose.
- Interest, if any, as a yearly rate.
- The repayment plan: one date, or a list of instalments with dates and amounts.
- Late payment terms, any security, and what counts as a default.
- 04
Official source and who accepts it
No government form exists for a private loan, and the agreement is not filed anywhere. Federal law still applies to its terms. The Interest Act limits interest to 5 per cent a year where a contract states a daily, weekly or monthly rate without the yearly equivalent, and the Criminal Code makes it an offence to charge more than a 35 per cent annual percentage rate.
When the Criminal Code measures that rate, it counts fees, fines and penalties for the credit as interest, so keep late charges modest. Taking property as security has its own rules; speak to a lawyer before you rely on it.
- 05
Common mistakes
Avoid these:
- Stating a monthly interest rate without the yearly rate.
- Instalments that do not add up to the amount owed with interest.
- One party signing and the other never signing.
- Describing the security vaguely, such as “my car”, instead of the make, model and vehicle identification number.
- Changing terms by text message instead of a written change signed by both of you.
- 06
How to have it signed and witnessed in Ontario
Fill in the form on this page and print the PDF. This document is not sworn, so no oath is needed and no notary is required by law. Sign the original on paper in ink.
If you want a signature witnessed or a copy certified, book an in-person mobile visit with Minute Notary anywhere in Ontario. Everyone signing brings government-issued photo ID and signs in front of the notary, who can also certify copies of the signed original.
Good to know
Before you fill it in.
Short notes on this template. Worth a minute before you start.
- 01
Prepared for use in Ontario. A general template, not legal advice.
- 02
Signed in person: this document is witnessed, so the notary must be physically present.
- 03
Sign in front of the notary, who witnesses your signature and applies the seal.
Frequently asked
Questions about the Personal Loan Agreement (Ontario)
- Is a loan agreement between family members enforceable?
- A written agreement signed by both parties is evidence of the loan and its terms, which helps if there is a dispute later. Whether a particular term can be enforced depends on the facts; ask a lawyer about a large or complex loan.
- Does it need to be notarized?
- No law requires it. Having a notary witness both signatures in person makes it harder for either party to deny signing, and a notary can certify copies of the signed original.
- Can we sign it with a notary by video?
- No. A notary in Ontario witnesses a signature in person. Book an in-person mobile visit, and bring government-issued photo ID for each person signing.
- Should I use a promissory note instead?
- Use a promissory note for a simple loan where only the borrower's promise matters. Use this agreement when you need a schedule, security or terms that bind both parties.
Keep exploring
Related templates
Other documents for banks, insurers, employers & pensions.
- 01Promissory Note (Ontario)
A promissory note is a borrower's signed, unconditional promise to repay a sum of money to a lender on a set date, in instalments or on demand. Prepare one for a personal loan in Ontario.
Fill it out - 02Statutory Declaration of Gift of Money or Property
A sworn declaration that you have given money or property as an outright gift, with no expectation of repayment — useful to confirm a genuine gift. Fill it in online, download a ready-to-sign PDF, and notarize in Ontario.
Fill it out - 03Statutory Declaration of Tax Residency
A sworn declaration of where you are resident for tax purposes — for an organization that asks you for a sworn statement of your tax residency. Fill it in online, download a ready-to-sign PDF, and notarize in Ontario.
Fill it out - 04Waiver of Independent Legal Advice
A waiver of independent legal advice records that a person chose not to obtain independent legal advice before signing a document, after being advised to do so. Consider the risks; obtaining advice is recommended.
Fill it out
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Fill it in online, then download a ready-to-sign PDF or an editable Word copy. We sign this document with you in person. Not sure what the appointment involves? Read about the Statutory Declarations service first.