Can I use gift funds as a down payment?

Most lenders will accept down payment funds that are a gift from family as an acceptable down payment. A gift letter signed by the donor is usually required to confirm that the funds are a true gift and not a loan. Where the mortgage requires mortgage loan insurance, Canada Mortgage and Housing Corporation requires the gift money to be in the purchaser's possession before the application is sent in to them for approval. Where mortgage loan insurance is provided by Genworth Capital this is not a requirement. See 'what is mortgage loan insurance?' for further information.

For Further Information please contact Chris Matthey at www.knowmymortgage.com
Tel: 613-384-4000 or 613-384-4000 x243
Fax: 613-384-4047
Email: chris@knowmymortgage.com