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The minimum down payment required to purchase a home is 5% and while there is still Zero Down 5% Cash Back mortgages available many clients opt for a gifted down payment for either the whole 5% or an amount on top of what you have initially saved to help 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.

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