Can I use gift funds as a down payment?

Most lenders will accept funds that are a gift from family as a down payment. However, there are a few steps you’ll need to take to do so. In most cases, you’ll require a letter signed by the donor to confirm the funds are a gift and not a loan. Also, if you require Mortgage Loan Insurance, Canada Mortgage and Housing Corporation requires the gift money to be in the purchaser’s possession before the application is sent to them for approval.