Direct Answer
Yes, you can use a gifted down payment from family in Canada, but lenders require a signed gift letter confirming the funds are not a loan, along with proof of transfer and typically 90 days of "seasoning" in your account before closing.
Introduction
Family support is one of the most common ways newcomers and first-time buyers reach their down payment goal. Doing it correctly , with the right documentation , keeps your mortgage application on track.
What Counts as a Gift
A mortgage gift must come from an immediate family member , typically a parent, grandparent, or sibling , and must genuinely be a gift with no expectation of repayment, distinguishing it from a loan that would affect your debt ratios.
The Gift Letter Requirement
Lenders require a signed gift letter stating the amount, the relationship to the donor, and explicit confirmation that the funds are a gift with no repayment expected. Templates are typically provided by your lender or mortgage broker.
Documenting Funds from Overseas
If the gift is coming from overseas, you'll need wire transfer documentation and, in many cases, a FINTRAC disclosure form, since Canadian financial institutions are required to report large incoming transfers as part of anti-money-laundering compliance.
Money Seasoning Explained
"Seasoning" refers to the requirement that gifted funds sit in your Canadian bank account for a set period , typically around 90 days , before closing, giving the lender a documented paper trail confirming the source of funds.
Key Takeaways
- Gifted down payments are accepted by Canadian lenders but require a signed gift letter.
- Funds must genuinely be a gift, not a loan, to avoid affecting your debt ratios.
- Overseas transfers require wire documentation and often a FINTRAC disclosure.
- Gifted funds typically need to "season" in your account for about 90 days before closing.
Expert Tips
- Request your gift letter template from your mortgage broker early, so the donor can sign it well before closing.
- Initiate overseas transfers as early as possible to comfortably meet the 90-day seasoning requirement.
Mistakes to Avoid
- Moving gifted funds into your account too close to closing, missing the seasoning window.
- Failing to clearly document the funds as a gift rather than a loan.
Checklist
- [ ] Confirm the gift is from an eligible family relationship
- [ ] Obtain a signed gift letter
- [ ] Initiate any overseas transfer well before the 90-day seasoning deadline
- [ ] Keep all wire transfer and bank statement documentation organized
Glossary
- Gift Letter: A signed document confirming down payment funds are a gift, not a loan.
- Money Seasoning: The requirement that funds sit in an account for a set period before use, to establish a documented source.
- FINTRAC: Canada's financial intelligence agency overseeing anti-money-laundering compliance.
Conclusion
A gifted down payment is a well-established, widely used path to homeownership in Canada , success comes down to proper documentation and timing, particularly the gift letter and the 90-day seasoning window.
Related Guides
- Minimum down payment in Ontario
- Mortgage document checklist
- Newcomer mortgage guide
- FHSA guide for newcomers
- Buyer readiness calculator
- How to buy a house in Ontario
- Book a consultation
About This Guide
- Last updated: July 31 to 2026
- Author: Mohammed Mustaf, Salesperson, HomeLife Miracle Realty Ltd., Brokerage
- Reviewed by: Mohammed Mustaf
- Educational notice: This guide is general information for Ontario buyers and renters, not legal, mortgage or financial advice.
- Sources: CMHC, Sagen, Canada Guaranty, Canada Revenue Agency, TRREB.