Gift letters and down payments from family abroad

What do Canadian rules say about gifted down payments?

Three federal sources set the frame:

• OSFI Guideline B-20 sets mortgage rules for federally regulated lenders. (OSFI is the Office of the Superintendent of Financial Institutions.) It says lenders should make "rigorous efforts" to see if the down payment comes from the borrower's own resources or savings. Where part or all of it is a gift, it "should be accompanied by a letter from those providing the gift confirming no recourse." Lenders should also keep "documentation verifying the source of the down payment."
• CMHC (Canada Mortgage and Housing Corporation) lists "a non-repayable financial gift from a relative" as a traditional down payment source for insured mortgages. Its tips page says you need "a signed letter" from the family member "acknowledging the purpose of the gift, and that it is non-repayable."
• FCAC says that "normally, the minimum down payment must come from your own funds." FCAC's page does not mention gifts. Each lender decides how it treats a documented gift.

None of these pages says the giver must live in Canada. They also do not define which relatives count. Lenders and other mortgage insurers set their own rules on these points.

How much down payment do you need?

FCAC's minimums, as of October 2026:

With less than 20% down, you need mortgage loan insurance. CMHC's homeowner product is open to non-permanent residents who are legally authorized to work in Canada. But CMHC says non-permanent residents are not eligible for its non-traditional (borrowed) down payment option. CMHC also says the purchase must not be prohibited under the federal ban on non-Canadians buying residential property. Check that rule with the foreign buyer tax calculator and your lawyer.

What goes into a gift letter?

Federal rules require the "no recourse" or "non-repayable" statement. Lenders usually provide their own form. Common contents are:

• the giver's full name, address and phone number;
• your full name, and your relationship to the giver;
• the exact amount and currency of the gift;
• the address of the home you are buying, if known;
• a clear statement that the money is a gift, that it does not have to be repaid, and that nothing is expected in return;
• the date and the giver's signature.

Apart from the non-repayable statement, this is a typical list, not a legal standard. Always use your lender's form when it has one. If the giver does not read English or French, a translation may help, and the lender may want the giver's signature witnessed. Ask in advance.

How do you show the money trail from abroad?

Lenders want to follow the money from the giver to you. Plan the steps:

1. The giver's statement shows the money in their account before it is sent.
2. The transfer record shows it leaving their account. A transfer straight from the giver to you is easier to follow than one through a third person.
3. Your statement shows it arriving in your Canadian account.
4. Your lender's deadline. Ask when the gift must be in your account and how many months of statements they want. CMHC's tips mention statements for "the past several months."

Transfers of CAD 10,000 or more are reported to FINTRAC and the CRA. That is routine. Your bank may also ask where the money came from. The same gift letter and statements usually answer it. See why banks ask about your money.

The giver's country may also have limits. For example, residents of India can send up to USD 250,000 per financial year under the Reserve Bank of India's Liberalised Remittance Scheme. "Gift or donation" is a permitted purpose. Tax collected at source may apply: see bringing money from India.

Example: a gift from parents abroad

Ana buys a CAD 450,000 condo in Ontario. Her parents in the Philippines give her CAD 30,000. She has CAD 15,000 of her own savings.

• Minimum down payment: 5% of CAD 450,000 = CAD 22,500.
• Her total: CAD 15,000 + CAD 30,000 = CAD 45,000, which is 10% down. She still needs mortgage loan insurance, because it is under 20%.
• Papers for the lender: the lender's gift letter signed by both parents, her parents' statement showing the money, the transfer receipt, and her Canadian statement showing the money arriving.
• Her parents' transfer is over CAD 10,000, so her bank reports it. She does nothing about that report.

This is an illustration only. Your lender's rules decide what you need. Use the mortgage affordability calculator and the closing costs calculator to plan the full amount.

Questions to ask your lender before the money moves

• Do you accept gifts from family members who live outside Canada?
• Which relatives can give a gift for a down payment?
• Do you have your own gift letter form? Must it be signed in front of a witness?
• By what date must the gift be in my Canadian account?
• How many months of statements do you need from me and from the giver?
• Can the gift come in a foreign currency, or must it be converted first?

Ask before your parents send anything. Fixing the paperwork after the money moves is harder. Learn the basics in mortgage basics for newcomers, and see if an FHSA could add to your down payment.

Do you pay tax on a gifted down payment?

The CRA lists "most gifts and inheritances" among amounts that are not reported or taxed. Income the money earns later is taxable. The giver's country may have its own gift rules. Read is money gifted from abroad taxable in Canada?

Common questions

Sources

• OSFI: Guideline B-20, Residential mortgage underwriting practices and procedures
• CMHC: Purchase mortgage loan insurance (homeowner)
• CMHC: General requirements for homeowner mortgage loan insurance
• CMHC: Mortgage application tips
• FCAC: Down payment
• CRA: Amounts that are not reported or taxed
• FINTRAC: Financial transactions reported to FINTRAC
• Reserve Bank of India: Liberalised Remittance Scheme FAQ

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.