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Mortgage gift letter template (Canada): fill in and download

A gift letter that survives underwriting says four things: who is giving, how much, for which property, and that nothing is owed back. Fill in the fields, check the preview, and download a lender-standard PDF for the donor to sign.

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GIFT LETTER

Date: September 27, 2026

To: To whom it may concern

Re: Gift of funds toward the purchase of [Property address]

I, [Donor full name], confirm that I have given, or will give before closing, the sum of $50,000.00 to [Recipient full name] as a gift to be used toward the down payment on the purchase of the property at [Property address].

I confirm that:

  1. This is a genuine gift. No part of it is repayable, now or in the future, in cash, in kind or through any other arrangement, and [Recipient full name] is under no obligation to repay me.
  2. I do not hold, and will not hold, any interest in the property, and no lien, charge or claim against the property arises from this gift.
  3. The funds are from my own resources and are not borrowed. I can provide evidence of the source of the funds if the lender requires it.
  4. I am the parent of [Recipient full name].

Donor signature: ______________________________ Date: ______________

Donor name: [Donor full name]

Recipient signature: __________________________ Date: ______________

Recipient name: [Recipient full name]

What a gift letter must say

CMHC's guidance for borrowers is short: if a family member is paying part of the down payment, the lender needs “a signed letter from them acknowledging the purpose of the gift, and that it is non-repayable.” Lenders build on that with the same elements every time, and the template above includes each of them:

  • The donor's full name and relationship to the recipient, and a statement that they are immediate family where the insurer requires it.
  • The exact amount and what it is for: the down payment, closing costs, or both, on a named property.
  • A non-repayable declaration: no repayment in cash or in kind, now or later, and no side agreement.
  • No interest in the property: the donor holds no lien, charge or claim on the home.
  • Source of funds: the money is the donor's own and not borrowed, with an undertaking to show evidence if asked.
  • Signatures and dates for the donor and the recipient, with the donor's contact details so the lender can verify the letter.

Who can give the gift on an insured mortgage

The three mortgage insurers each treat a gift from close family as a traditional down payment source, read on September 27, 2026:

  • CMHC lists “a non-repayable financial gift from a relative” among traditional sources, and its consumer FAQ says “non-repayable gift from immediate family members.”
  • Sagen accepts “a non-repayable gift from an individual related to the borrower through a familial or legal relationship” and defines immediate family as “a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependent.”
  • Canada Guaranty accepts a down payment “gifted from a close family member” and defines immediate family as a person related to the borrower by marriage, common-law partnership, or any legal parent-child or sibling relationship.

Gifts from anyone else cost more

A gift from a friend, an employer or a more distant relative is not a traditional source. It falls under the non-traditional or borrowed down payment programs: CMHC requires a non-traditional down payment to be “arm's length and not tied to the purchase and sale of the property,” limits it to 1- or 2-unit properties at 90.01% to 95% loan-to-value for borrowers with strong credit, and charges a 4.50% premium instead of 4.00% at that loan-to-value. Sagen's Borrowed Down Payment and Canada Guaranty's Flex 95 Advantage programs list “gifts from an individual that is not related to the borrower” at the same 4.50% premium. Half a point of premium on a $475,000 insured mortgage is about $2,375, so the relationship on the letter is worth getting right.

What lenders ask for besides the letter

The letter alone rarely closes the condition. CMHC tells applicants to expect a request for “recent financial statements for the past several months” to show the down payment; lenders usually ask for 90 days, a lender convention rather than a published rule. In practice the file needs:

  • Evidence of the gift landing: the deposit into the client's account, or the lawyer's trust ledger, matching the letter amount.
  • The donor's statement for large gifts and for funds arriving from outside Canada, showing the money existed before it moved.
  • The client's own statements for the history window, so the gift is not mistaken for an unexplained large deposit. Our down payment verification guide covers the 90-day trail, large deposits and trust ledgers.

Get the letter signed early. Chasing a donor's signature two days before closing is a self-inflicted wound, and a donor who is asked for a bank statement at the last minute sometimes changes their mind about the gift.

Frequently asked questions

Is a gifted down payment taxable in Canada?

No. The Canada Revenue Agency lists most gifts and inheritances among amounts that are not reported or taxed. Income earned on the gift after it is received, such as interest, is taxable. The donor may still be asked by the lender to show where the money came from.

What if the gift has to be paid back?

Then it is not a gift. A repayable amount is a loan: it does not qualify as a traditional down payment source with the insurers, it belongs in the client’s debt-service ratios, and signing a gift letter for it is a misrepresentation. Borrowed down payments have their own insurer programs at a higher premium.

Who can give the gift on an insured mortgage?

CMHC describes a non-repayable gift from a relative or immediate family member as a traditional source. Sagen accepts a non-repayable gift from an individual related to the borrower through a familial or legal relationship, and defines immediate family as a father, mother, child, brother, sister, grandparent, legal guardian or legal dependent. Canada Guaranty refers to a close family member. A gift from anyone else falls under the non-traditional or borrowed down payment programs.

How much of the down payment can be a gift?

The insurers publish no cap for a non-repayable gift from immediate family on a traditional down payment. FCAC’s consumer guidance says the minimum down payment normally comes from your own funds, so check the specific lender’s policy: some want to see a portion of own resources, most accept a fully gifted down payment from immediate family with the letter and deposit evidence.

When do the funds have to be in the client’s account?

Before the lender’s condition deadline and in any case before closing, either in the client’s account or in the lawyer’s trust account. The lender wants the deposit to match the letter amount. For large gifts or funds arriving from outside Canada, expect a request for the donor’s own statement showing the funds before they moved.

Should I use this template or the lender’s form?

If the lender provides its own gift letter form, use that; it is what their underwriter is trained to read. This template covers the declarations lenders look for when they do not provide one, and it is useful for getting the donor’s commitment on paper early in the file.

More free broker tools and guides

This template and page are for professional use and are not legal advice. Insurer and lender rules were read on September 27, 2026 from the pages linked above and change without notice; the lender's own form and current policy govern. CRA guidance on gifts: amounts that are not reported or taxed. Inside BrokerOS, document requests like this one go out through the client portal and the signed letter files itself to the deal.