(778) 668-9320 scott.dawson@verico.ca

The minimum down payment required to purchase a home is 5%. For first time buyers, especially in Vancouver it’s pretty hard to come up with the whole down payment without a little help. For those people a gifted mortgage down payment can help them get to the 5% or even be used on top of what they have initially saved to help avoid paying CMHC mortgage insurance.

For self-employed borrowers using stated income programs that require a 10% down payment a minimum of 5% must come from the borrowers your own savings. The remainder may be gifted.

How do gifted mortgage down payments work?

  • Gifted down payments must come from a relative or immediate family member.
  • Lenders will require a letter of confirmation verifying the gift is unencumbered, requires no repayment and states relationship of giftor to giftee.
  • You will also need to confirm the gifted down payment has been received in your account prior to closing on your purchase.
  • If you would like more information about gifted down payments or on how to get pre-approved for a mortgage don’t hesitate to contact me or leave a comment.