Downpayment by means of a Gift.

Dated: February 7 2023

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Many of us have well meaning Family members who are willing to step up and help you with that home purchase! I have had many inquiries as to what this should look like.

Here are some guidelines:

  • Must be a gift and non-repayable.
  • Must be from a Family member, some Lenders even allow Aunts, Uncles and cousins!
  • No size limit!
  • Requires a letter stating that it is a gift, not a loan, and is non-repayable.

In this day and age where the average home costs over 500000, your minimum downpayment soon adds up. The 5% you hear about, is only on the first 500000, anything over 500000, up to 1000000 is 10%, over a million we are at 20%.

So that gift for a downpayment will certainly go a long way to offset all the costs. Due diligence must be practised by confirming with your trusted financial institution as to who they are willing to accept as a close Family member.

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Claire Weston

Eighteen years working with Buyers, Sellers and Investors in the Southern Georgian Bay Area. I am a licensed Real Estate Broker and an accredited Seniors Real Estate Specialist, SRES®. I empower B....

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