Signing example
Sign a family loan agreement online
A family loan agreement exists to prove, years later, that the money was a loan and not a gift, and that everyone in the family agreed how it would be repaid. This three page agreement records a $40,000 interest free house deposit loan from two parents to their daughter, with a repayment table she initials and three signatures collected in any order.
The document, with its fields
The pages as a signer sees them, with the signature, name, title and date fields placed where each party has to complete them.
Family Loan Agreement
1. Who is lending and who is borrowing
| Lender A | Paolo Marchetti, of 31 Carrington Street, Brunswick West VIC 3055 |
|---|---|
| Lender B | Rosa Marchetti, of the same address |
| Borrower | Giulia Marchetti, their daughter, of 4/118 Gordon Street, Footscray VIC 3011 |
| Property | 2/9 Hampton Parade, West Footscray VIC 3012, which the Borrower is buying with settlement due on 6 November 2026 |
2. Why this is written down
The Lenders are lending their daughter part of her house deposit. Everyone in the family wants it understood, now and later, that this money is a loan that is to be repaid, and not a gift and not an early share of an inheritance. Writing it down also lets the Borrower show her home loan lender exactly what she owes and when, which the lender has asked to see before it approves her loan.
3. The loan
| Amount lent | $40,000.00 |
|---|---|
| How it is paid | By transfer from the Lenders' joint account to the Borrower's conveyancer's trust account by 30 October 2026 |
| What it is for | The deposit and purchase costs for the Property, and nothing else |
| Interest | None. The loan is interest free for its whole term |
| Security | None. The Lenders do not take a mortgage over the Property |
| Repayments | $625.00 a month for 64 months, starting 1 February 2027 |
| Final repayment | 1 May 2032 |
4. Why repayments start in February
The Borrower's first home loan repayment falls due in December 2026, and she starts a new role at a higher salary in January 2027. The Lenders have agreed to a three month gap so the Borrower can settle into her new mortgage before the family repayments begin. No interest accrues during the gap or at any other time.
5. The Lenders hold the loan together
The $40,000.00 comes from the Lenders' joint savings and the loan is owed to them jointly. A repayment made into their joint account is a repayment to both of them. If one Lender dies, the whole amount still owing is owed to the other Lender, and if both have died it is owed to their estates in the shares their wills provide.
6. Repayment schedule
Repayments are made by automatic transfer on the 1st of each month into the Lenders' joint account, BSB 083 004, account 5512 9038, with the reference GIULIA LOAN.
| Year | Repayments | Paid in the year | Owing at 31 December |
|---|---|---|---|
| 2027, from 1 February | 11 | $6,875.00 | $33,125.00 |
| 2028 | 12 | $7,500.00 | $25,625.00 |
| 2029 | 12 | $7,500.00 | $18,125.00 |
| 2030 | 12 | $7,500.00 | $10,625.00 |
| 2031 | 12 | $7,500.00 | $3,125.00 |
| 2032, to 1 May | 5 | $3,125.00 | $0.00 |
| Total | 64 | $40,000.00 |
7. Paying early, pausing and changing the plan
- The Borrower may repay more than $625.00 in any month, or the whole balance at any time, with no extra cost.
- If the Borrower loses her job, takes parental leave or has a serious illness, she may ask to pause repayments for up to six months. The Lenders will not unreasonably refuse, and the pause simply moves the final repayment later.
- Any change to the amount or timing of repayments is recorded in a short letter signed by all three of them.
8. If the Property is sold
9. If the Borrower marries or lives with a partner
This loan is the Borrower's personal debt. It is not a contribution by the Lenders to any relationship the Borrower enters, and if that relationship ends, the balance owing is still a debt the Borrower owes the Lenders. The Borrower agrees to tell any future partner about the loan before that partner contributes to the Property.
10. If a Lender dies or loses capacity
The loan does not end and is not forgiven if a Lender dies. If the Lenders want any part of it forgiven, they will do that in writing or in their wills, and nothing said in conversation changes this agreement. If a Lender loses capacity, their attorney under an enduring power of attorney may receive repayments and may agree a pause under clause 7 on that Lender's behalf.
11. Tax, Centrelink and the home loan lender
Because the loan is interest free, the Lenders receive no interest income from it. Each party has been told to ask their own accountant whether the loan affects their tax or, for the Lenders, any future pension assessment. The Borrower may give a copy of this agreement to her home loan lender and her conveyancer, and to nobody else without the Lenders' agreement.
12. Advice and free will
Each of them confirms that they have read this whole agreement, have been told they may get independent legal advice before signing, and are signing because they want to and not because anyone in the family has pressured them.
13. General
This is the whole agreement about the loan. It is governed by the law of Victoria. It may be signed electronically, in any order, and each of them gets a copy of the certified PDF once all three have signed.
Who signs what
- Giulia Marchetti, borrower
- Initials under the repayment schedule on page 2 · Signature and stamped date on page 3 · Email link
- Paolo Marchetti, lender A
- Signature and stamped date on page 3 · Email link
- Rosa Marchetti, lender B
- Signature and stamped date on page 3 · Email link
The signing journey
Step 1
Seven fields for three people
Giulia gets an initials spot and a signature and date. Each parent gets a signature and a date, laid out as one row for the borrower and a second row for the two lenders.
Step 2
Everyone invited together
Sign in order is off, so three invitations go out in the same minute and nobody waits for anyone else.
Step 3
The borrower initials the schedule
Giulia's initials land under the clause that brings the whole balance forward if the property is sold.
Step 4
Each signs when ready
In this run Giulia signed first, then Paolo, then Rosa, all on 4 October 2026, but any order would have completed the envelope.
Step 5
Certified when the last one signs
The third signature completes the envelope and all three receive the certified PDF, with the certificate as a separate download.
Every field, and who fills it
Giulia Marchetti initials once at the bottom right of page 2, below the repayment schedule and the property sale box, then signs on page 3 in the first row with the date stamped under her signature. Paolo and Rosa Marchetti sign side by side in the second row, each with their own date. Nobody types anything. The $40,000 amount, the 64 repayments of $625 from 1 February 2027 to 1 May 2032, the year by year balances and the Lenders' bank account are printed in the PDF.
How to adapt this envelope
A loan with interest adds the rate to clause 3 and an interest column to the schedule, and the initials stay under it. Where only one parent is lending, delete the third recipient and the Lender B column. If the family wants the borrower to type the property address herself, add a text field on page 1, since the sender cannot pre fill a value for her.
Why the paper trail matters
Family loans are usually tested when circumstances change: a sale, a separation or a death. The agreement answers what was agreed and the certificate answers who agreed it. It lists each of the three signers with their verification method, signing time, IP address, consent time and the hash of the document they signed, and an event log showing all three invitations sent together.
What makes this signing flow work
No order, because nobody depends on anyone
A child and two parents agreeing a loan are not countersigning each other in sequence. With the switch off, all three links go out at once and the envelope completes whenever the last of them signs, which suits a family spread across suburbs.
Initials where the loan can be called in
The only event that makes the balance payable early is a sale of the property. Giulia's initials sit directly under that box on page 2, so nobody can later say the condition was buried in the fine print.
Three dated signatures make it a loan
Banks, accountants and, one day, executors all ask whether family money was a gift. Three signatures on one page, each with a stamped date and an email address on the certificate, are a clear answer.
Questions people ask
Does a family loan need a written agreement at all?
Nothing requires one, but without it a later dispute turns on memory. A home loan lender may ask to see it before approving the borrower, and an estate may need it to show the money was lent, not given. A signed, dated document answers both cheaply.
Is a family loan agreement valid if signed electronically?
In Australia the Electronic Transactions Act 1999 recognises an electronic signature that identifies each person and shows their intention, where everyone agrees to sign that way. A family loan is an ordinary contract, so three electronic signatures bind it the same way three pen signatures would.
Can each parent sign from their own email address?
Yes, and they should. Each recipient has their own link sent to their own address, and the certificate records each signature against that address. Sharing one inbox would make it harder to show later that both parents agreed, rather than one signing for both.
Can a pension or tax position be affected by an interest free family loan?
Possibly, which is why clause 11 tells everyone to ask their own accountant. Services Australia has its own rules about gifting and assets for people on payments. The signing tool does not give tax or benefits advice; it only records who agreed to what and when.
How long do the family have to sign?
Every envelope expires 30 days after it is created, and the app cannot change that. If one parent is travelling for longer, send the envelope when they are back, or void it and send a new one later, because an expired envelope cannot be revived.
What happens if one parent declines?
The envelope moves to declined and the sender is emailed with any reason given. The loan agreement does not complete, even if the other two have signed. The family can talk it through, then void the envelope and send a revised agreement as a new one.
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