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.