Gifted Down Payment

Most Canadian lenders accept gifted funds toward a down payment from an immediate family member (parents, grandparents, siblings, spouse, or sometimes in-laws). Gifts from non-family or anyone with a financial interest in the property are typically rejected. The lender requires a gift letter signed by the donor confirming three things: the funds are a gift (not a loan), no repayment is expected, and the donor will not have any interest in the property. Lenders also typically require a 30- or 90-day bank statement showing the funds in the donor's account before transfer to the buyer, and a statement showing the funds in the buyer's account before closing — to confirm it's not borrowed money disguised as a gift. For insured mortgages, at least 5% of the down payment must be the borrower's own savings — though this rule is waived if the buyer's GDS/TDS qualify entirely on their own income. For uninsured, gifts can fund 100% of the down payment subject to lender policy.