Gifted down payments: helping family without last-minute surprises

A family gift can be an important part of your homebuying plan. The lender needs to know it is a genuine gift, who it comes from and how the money reached your account. Talk to Matt before moving it.

A gift is not a quiet loan

If the money must be repaid, it is borrowing—even if the agreement is informal or interest-free. It must be disclosed and may affect qualification. Never sign a gift letter saying there is no repayment expectation when there is one.

Who may give the gift

Many lenders and insurers accept gifts from immediate family, but permitted relationships and evidence vary. A gift from a friend, overseas relative or another source may require extra review or may not fit the selected program. A relationship letter alone does not guarantee acceptance.

Tell Matt the donor’s relationship to you, amount and country of origin.
Ask whether the selected lender accepts that source before making commitments.
If the donor is borrowing the money, disclose that and seek appropriate advice.

What a gift letter and bank records show

Use the lender-approved letter supplied through Matt. It commonly names the donor and recipient, relationship, amount, property or purpose and confirmation that repayment is not expected. The lender may also require donor-source records and proof of the transfer into your account.

Keep statements showing account ownership and the deposit.
Retain transfer confirmations and any currency-conversion records.
Do not turn an electronic trail into unexplained cash deposits.
Follow the file-specific deadline for having funds deposited and verified.

How much can be gifted?

There is no single mortgage-program limit that applies to every gift. The purchase price, down-payment minimum, occupancy, insurer and lender rules still apply. Five percent is not the minimum for every home price, and there is no universal Canadian rule that every self-employed borrower must personally supply five percent. Matt confirms the program suitable for your situation.

Tax and family considerations

A straightforward cash gift between individuals in Canada is generally not taxed simply because the recipient receives it. That does not make every transaction tax-free: selling assets to fund the gift, foreign rules, attribution rules and estate issues can matter. The donor should obtain advice if needed and consider whether they can comfortably afford the gift.

Discuss expectations clearly before signing.
Ask your legal adviser about ownership shares or family-law concerns.
Keep a separate reserve for closing costs; the gift may not cover every expense.

Let’s make this personal

Tell Matt what matters most to you, and what feels unclear. We can help you work through the mortgage side of the decision and coordinate the next steps with your other professionals. Email matt.parker@indimortgage.ca or call 778.897.2554.

General Canadian mortgage guidance with British Columbia context; reviewed October 16, 2026. Your lender’s written requirements, mortgage contract and professional legal or tax advice take priority.