Gifted down payment mortgage:
using family help
the way lenders want.

On an insured, owner-occupied purchase, yes. CMHC lists a non-repayable financial gift from a relative as a traditional down payment source, so a gift from an immediate family member can fund up to 100% of your down payment, even at the 5% minimum. The key conditions are that it's a genuine gift with no repayment, it comes from an eligible relative, and it's documented properly. For some non-insured or rental purchases lenders want you to have at least a portion of your own savings, which we'll flag for your specific deal.

Most lenders accept gifts from parents, grandparents, children, and siblings; some lenders accept other relatives on conventional (20%+ down) files only. Gifts from friends, employers, or anyone expecting repayment generally don't qualify. Lender definitions vary slightly, so we confirm your specific donor is acceptable to the lender we're using before you rely on the funds.

It's a short signed document the lender requires, stating the donor's name, their relationship to you, the gift amount, the property being purchased, and — crucially — that the money is a true gift with no expectation of repayment. We provide the wording; the donor just signs it. Wrong or missing wording is one of the most common avoidable hiccups, so we get it right the first time.

Before closing, by a deadline the lender sets (commonly 15 to 30 days before closing), with a traceable transfer. They're confirming the money is really there and really yours. We map the timing to your closing date so the deposit is seasoned and documented when underwriting looks for it.

A genuine gift helps — it's down payment, not debt, so it lowers the amount you need to borrow without adding a payment to your ratios. The danger is a 'gift' that's secretly a loan: if repayment is expected, lenders treat it as debt and it can hurt your qualifying. That's why the no-repayment statement in the gift letter matters.

Yes, gifts from family abroad are common, but lenders apply extra scrutiny to the source of funds for anti-money-laundering reasons. Expect to provide additional documentation showing where the money came from and a clear transfer trail. We prepare this in advance so an international gift doesn't delay your closing.

Absolutely — and it's a powerful combination for first-time buyers. Your own FHSA and RRSP HBP savings can stack with a family gift to build a stronger down payment, lower your insured premium, or simply get you in sooner. We'll model the mix that works best for your purchase.

A true gift carries no ongoing liability — the donor isn't on title or the mortgage, and isn't responsible for the loan. If a family member instead wants to be on the mortgage to help you qualify, that's a co-signing or guarantor arrangement, which is different and does carry obligations. We explain both so your family chooses with full information.

You're in the most flexible scenario. Insured first-time purchases allow fully gifted down payments and pair with every first-time program. Start with our first-time home buyer page for the full toolkit, and we'll layer the gift in correctly.