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:
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.