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Mortgage Squad Advisors
Gifted Down Payment

Family helping with the down payment? Here’s how to do it the way lenders want.

On an insured purchase, a gift from an immediate relative can cover up to 100% of your down payment — as long as the gift letter, the deposit timing, and the paper trail are done right.

Up to 100% gifted (insured)Immediate-family giftProper gift letterDeposit-timing handledNo repayment allowedFirst-time-buyer friendly
5-star rated| FSRA #13737| 5-min pre-qualification
Today’s best 5-yr fixed
4.19%
across 50+ lenders
Live math · Gifted Down Payment
$3,218/mo
Property value$750,000
Down payment$150,000
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5-star rated| FSRA #13737| 50+ langs

The ‘Bank of Mom and Dad’ is now one of the most common ways Canadians get into their first home — but a gift done the wrong way can stall your approval at the worst possible moment. Lenders have specific rules: the gift has to come from an immediate family member, it has to be a true gift with no repayment expected, and it has to land in your account and be documented before closing. Get the gift letter wording wrong, or transfer the money too late, and an otherwise-approved file can wobble. We set it up correctly from day one so the help your family is giving actually gets you the keys.

What you get

Why Canadians choose Mortgage Squad Advisors.

On insured purchases, a gift from an immediate relative can fund up to 100% of your down payment
Works beautifully alongside first-time-buyer programs (FHSA, RRSP Home Buyers’ Plan)
We provide the exact gift-letter wording lenders require — signed by the donor
Guidance on deposit timing so the funds are seasoned and traceable before closing
Clarity on who counts as ‘immediate family’ for each lender
Structure that keeps the gift a true gift — no repayment terms that would sink your ratios
Coordination if the gift comes from abroad, including the extra documentation lenders want
Pairs with as little as 5% down on insured purchases when the gift tops up your own savings
Plain-language walkthrough for the family member doing the gifting, too
All lender + broker fees disclosed in writing upfront
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How it works

Three steps. No jargon. No pressure.

1

Confirm the gift fits

We confirm the donor is an eligible immediate family member and the purchase qualifies (owner-occupied insured purchases are the most flexible). We tell you up front how much of your down payment the gift can cover and how it interacts with any of your own savings or first-time-buyer programs.

2

Paper it correctly

We supply a gift letter with the wording lenders expect — donor name, relationship, amount, the property, and a clear statement that the funds are a gift with no repayment. The donor signs it. We also map the deposit timing so the money is in your account and documented well before closing.

3

Approve + close

With the gift documented and your income confirmed, we secure the approval and your lawyer closes. Because the paperwork was right from the start, the gift is a non-event in underwriting instead of a last-minute scramble.

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FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Can my whole down payment be a gift?
On an insured, owner-occupied purchase, yes — 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 (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.
Who counts as ‘immediate family’?
Most lenders accept gifts from parents, grandparents, children, and siblings; many also accept other close relatives. 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.
What exactly is a gift letter?
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.
When does the money need to be in my account?
Lenders generally want to see the gifted funds in your account before closing, with a traceable transfer — often around 15 days ahead, though it varies. 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.
Does the gift affect my mortgage qualifying?
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.
Can the gift come from outside Canada?
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.
Can I combine a gift with the FHSA or RRSP Home Buyers’ Plan?
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.
Does my family member take on any liability by gifting?
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.
What if I’m a first-time buyer using a gift?
You’re in the most common scenario of all, and the most flexible. 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.

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