Can this gift actually be used?
Family help is one of the most common ways first-time buyers get into a home — but not every "gift" counts the same way. Check who's gifting you funds before you rely on it.
Immediate family (parent, grandparent, sibling, child, or spouse/partner) can gift a down payment for an insured mortgage — as long as it's a true gift with no repayment expected.
For an insured mortgage in Canada, a gifted down payment must come from an immediate family member. Anything else is usually treated as borrowed funds. Always confirm with your broker before relying on it.
- The funds must be the gifter's own — not borrowed from a loan, credit line, or another person.
- It must be a genuine gift with no expectation of repayment, ever.
- The gifter may be asked to show the money in their account (often a 90-day history / source of funds).
- Funds are usually transferred to the buyer early — lenders often want them 'seasoned' for 15+ days before closing.
- A signed gift letter is required — but your lender provides their own specific format (see below).
- Only immediate-family gifts qualify for an insured mortgage.
A signed gift letter is required — but each lender uses their own specific wording and form. Rather than a generic template that might get rejected, we'll get you the exact letter your lender accepts when you're matched with one. Don't have your gifter sign anything until then.
Get my free Strategy PlanProvided by the Hello Mortgage Team for guidance only — this is educational, not legal advice or a guarantee of mortgage approval. Confirm all requirements with your mortgage broker.