Gift Letter for Gifted Down Payment

If you are trying to buy a house and don't have enough saved for a down payment, or your family has money set aside to gift to you, or maybe you are receiving an early inheritance – we can use that money towards your down payment. We see this a lot with first time home buyers, and it makes sense. Buying a home will probably be your biggest investment and having enough cash on hand to do so, can be tough. If you are using gifted money for your down payment, the lender will require a signed gift letter from both parties. The letter confirms the amount of money is a gift and not a loan that needs to be repaid. In Canada we have lots of rules around anti-money laundering and when we are using gifted funds we need to satisfy the lenders requests. Not everyone can gift money, but lenders allow family members to gift other family members money. If you have more questions about using gifted down payment, please reach out to one of our licensed brokers.