15. Can I use gifted funds as a down payment for my purchase?

Most lenders will accept down payment funds that are gifted from family members as an acceptable source of 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 Financial this is not a requirement.