Gifted Down Payment
Transferring gifted down payment can go very smoothly if done correctly. It can also become a headache if money is transferred incorrectly. Follow these steps to insure a stress-free transaction.
- The lender will require a Gift Letter. This has the information of the gifter, information for subject property, amount of gifted funds and the borrower's information. It needs to be signed and dated by all parties. Your mortgage broker will put together this document and send it for signatures.
- Do not start transferring money until your mortgage broker gives you the go ahead.
- A bank draft from from your family member's bank is the easiest and most efficient way to transfer the money.
- Your mortgage broker will need a copy of the bank draft
- Your mortgage broker will need a full PDF statement from the you (the borrower) bank account showing proof the gifted money has been transferred.
If you are unsure, ask before you transfer.