In Calgary, a loan between private individuals is governed by Alberta law and the Criminal Code: a written agreement is advised, the rate is capped at 35%, and recovery is possible before the civil division of the Alberta Court of Justice up to $100,000.
An energy economy with uneven incomes
Home to many oil and gas companies, Calgary goes through cycles of hiring and layoffs tied to the price of a barrel. During downturns, energy workers turn to family or colleagues to cover a mortgage when bank credit is not available.
Newcomers drawn by Alberta housing
Every year Calgary welcomes Canadians from Ontario and British Columbia, attracted by more affordable rents, as well as economic immigrants. With no local credit history, these households sometimes borrow from relatives who stayed in their home province.
The Criminal Code applies to loans made in Calgary
The 35% annual percentage rate ceiling, in force since January 2025, applies to loans agreed in a downtown office just as much as in a Calgary residential neighbourhood. Set-up fees and late payment penalties are included in the calculation.
Provincial licences for high-cost lenders
In Alberta, the provincial consumer protection law requires payday lenders and high-cost credit providers to hold a licence, issued by the ministry responsible for consumer services. A private individual without a licence cannot run this kind of business.
The Alberta Securities Commission, based in Calgary
The ASC, headquartered in Calgary, monitors platforms offering loan securities to Alberta investors and publishes warnings. Any peer-to-peer lending offer promising guaranteed returns should be checked in the national registration search tool of the CSA, the Canadian Securities Administrators.
Private mortgages and the land titles office
A loan secured on a Calgary house requires a mortgage registered with the Alberta land titles registry. In Alberta, lawyers who are members of the Law Society of Alberta, often also notaries public, prepare and register these documents.
Alberta Court of Justice: claims up to $100,000
Since August 2023, the civil division of the Alberta Court of Justice has heard claims up to $100,000, the highest ceiling in the country. Alberta's limitations law generally sets a two-year deadline after the default is discovered.
Loan fraud during periods of layoffs
After a wave of job cuts in the oil sector, adverts promise a loan with no credit check in exchange for insurance fees. Our guide to urgent loans between individuals explains why urgency is the lever fraudsters prefer.
Calgary Police Service and the Anti-Fraud Centre
A victim in Calgary files a report with the Calgary Police Service, then reports the scam to the Canadian Anti-Fraud Centre. They contact their bank or credit union to try to stop the transfer and note the address of any cryptocurrency machine used.
Calgary's French-speaking community and its support network
French speakers in Calgary, including many Quebecers and French nationals working in energy, find services through the regional ACFA, the francophone association of Alberta. For the federal rules as a whole, see our page on peer-to-peer loans in Canada and Quebec.
Checking a lender before Stampede and summer spending
Seasonal spending, such as summer holidays or the July Stampede, pushes some Calgarians towards express loans. Our guide on how to check that a private lender is genuine offers a checklist to use before handing over any identity document.
Calgary and Edmonton: same province, same rules
A loan between a Calgary resident and a relative in Edmonton is still governed by Alberta law, with the same court and the same limitation period. Only the city of the competent courthouse changes, depending on where the defendant lives.
Arranging a loan between individuals in Calgary
- Draft a loan agreement or promissory note that names Alberta law as governing and sets a monthly schedule.
- Calculate the total annual cost to make sure interest and fees stay below the 35% criminal threshold.
- Transfer the funds from a Canadian account by traceable transfer, with a reference mentioning the loan.
- Have an Alberta lawyer register any private mortgage securing the loan on a Calgary property.
- Check ASC warnings and provincial licence holders before contacting an unknown lender.
- Keep a record of repayments and declare the interest received to the CRA every year.
Indicative costs of a private loan in Calgary
| Item | Indicative amount | Note |
|---|---|---|
| Interest agreed between individuals | At most 35% APR (indicative) | Section 347 ceiling |
| Alberta lawyer's fees | Vary, in Canadian dollars | Recommended for a private mortgage |
| Land titles registration | Fees set by Alberta | Protects the lender if the property is sold |
| Claim before the Court of Justice | Filing fees depend on the amount | Claims up to $100,000 |
| Tax on interest | Federal and Alberta marginal rate | Annual T1 return |
Documents to prepare in Calgary
- Alberta driver's licence, Alberta identification card or passport
- Signed promissory note or loan agreement
- Void cheque or direct deposit form
- Record of employment or recent pay stubs
- Repayment schedule in Canadian dollars
- Proof of the initial transfer to the borrower's account
Mistakes to avoid and loan scam warning signs in Calgary
- Believing that a genuine lender grants a guaranteed loan to a laid-off worker in exchange for fees paid upfront.
- Lending to a colleague on site without a written contract, then losing touch when they leave to work in Fort McMurray.
- Ignoring the two-year deadline in Alberta's limitations law and claiming the debt too late.
- Paying a so-called Calgary lawyer in gift cards to release funds that will never arrive.
- Investing in a lending platform not registered with the ASC on the strength of testimonials posted online.
Calgarians' questions about lending between individuals
Which court should I use in Calgary for a $20,000 debt?
The civil division of the Alberta Court of Justice, which hears claims up to $100,000. The procedure is simpler than before the Court of King's Bench. Prepare the signed agreement, proof of the transfers and the history of your messages with the borrower.
Does a loan between friends in Calgary need to be notarised?
No, a signed written agreement is enough in most cases. A lawyer becomes useful if the loan is secured by a mortgage on real estate, or if the amount justifies clauses drafted to measure.
Can a private individual charge an arrangement fee in Alberta?
They can, but these fees are added to the interest when calculating the annual percentage rate. If the total exceeds 35%, the lender breaches the Criminal Code. Lending regularly at high cost may also require a provincial licence.
How do I check a lending platform based in Calgary?
Consult the Alberta Securities Commission warnings and the CSA national registration search tool. A legitimate platform displays its registration category, its address and its offering documents. If these are missing, treat it as a warning sign.