Family support can take different forms. Describe what everyone intends rather than using “gift” as a general label for any contribution.
1. Write down the intended arrangement
Identify who is providing the money, who will own the home and whether repayment is expected. If the money is a loan, say so. If the contributor expects an ownership interest, discuss that with your lawyer before committing to a purchase.
2. Ask about the evidence and timing
Ask the lender what documentation is required, who must sign it, and when funds must be available. Keep the source and movement of money traceable. Do not assume a transfer on the closing date will leave enough time for the required checks.
3. Keep a complete purchase budget
A contribution toward the down payment does not by itself cover all closing expenses. List the deposit already paid, remaining purchase funds and estimated closing costs, then identify which person is paying each amount.
Questions to bring to our conversation
- Is any repayment or ownership interest expected?
- What documentation does this lender require?
- When must the funds be available and verified?
Further reading: FCAC: Mortgage pre-approval. General information; lender requirements and individual circumstances vary.