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Loan Forgiveness Letter (Ontario)
NextGen Docs form ND-1185. Search ND-1185 on docs.ngz.ca to make this document again.
A letter from a lender that cancels all or part of a loan, so the borrower no longer owes it.
Start this document FreeHow it works
What you will fill in
- Lender's full name (who forgives)
- Borrower's full name and address
- Date of the original loan
- Original loan amount ($)
- How much are you forgiving?
- Amount forgiven ($)
- Amount still owing after this ($)
- Why is it forgiven?
- Which province's laws apply?
- Date of this document
Good to know
- For people, forgiving a family loan is usually treated as a gift. Canada and Ontario have no gift tax.
- For a business or corporation, a forgiven debt can be taxable or reduce tax losses under the Income Tax Act debt forgiveness rules. CRA expects it to be reported. Ask your accountant.
- Keep this letter with the original loan agreement or promissory note. Return or mark the note 'Cancelled'.
Help in your language
Every question comes with help like this. For example, “Lender's full name (who forgives)”:
English: The person or business that lent the money, for example Harjit Singh Dhillon.
اردو: قرض دینے والے کا نام۔
ਪੰਜਾਬੀ: ਕਰਜ਼ਾ ਦੇਣ ਵਾਲੇ ਦਾ ਨਾਮ।
हिन्दी: कर्ज़ देने वाले का नाम।
Français: La personne ou l'entreprise qui a prêté l'argent.
Questions people ask
How much does the Loan Forgiveness Letter cost?
It is free to fill in, preview and download.
Can I fill in the Loan Forgiveness Letter in Urdu, Punjabi, Hindi or French?
Yes. The finished document is in English, but every question has plain help in English, Urdu, Punjabi, Hindi and French, and you can speak your answers.
Do I need a lawyer?
Many people use this document on their own. If your situation is complicated, or a lot of money or your home is involved, talk to a lawyer or licensed paralegal. In Ontario, the Law Society Referral Service (findlegalhelp.ca) gives a free 30-minute consultation.
Is my information private?
Only you can see your answers. They are saved on your device, and in your own account if you sign in, so you can finish on another device. NextGen Docs is not a law firm and does not give legal advice.