Gifted Mortgage Down Payments

Posted by Scott Dawson on May 30, 2011 in Blog, FAQ, News | 0 comments

It’s quite common for parents to help out their children or relatives these days with gifted down payments on their property purchases. The minimum down payment required to purchase a home is 5% and while there is still zero down mortgages available many clients opt for a gifted down payment for either the whole 5% or an amount on top of what their children or relatives have saved to help them avoid paying CMHC mortgage insurance.

There are a few things to keep in mind with gifted down payments however:

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 have to confirm the gifted down payment has been received in your account prior to closing on your purchase.

Note: For self-employed borrowers using stated income programs a minimum 5% down payment must come from the borrowers own savings. The remainder may be gifted from an immediate family member.

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 by any of the methods below or leave a comment.

Phone: (778) 668-9320
Toll Free: 1 (888) 759-0190
Email: scott.dawson@verico.ca
Twitter: @sdd