# How can I help borrowers navigate down payment requirements?

> Down payment sources must trace to the borrower — gifted funds need a signed letter confirming the gift is not a loan, and FHSA and RRSP Home Buyers' Plan withdrawals are acceptable sources with no federal seasoning rule (individual lenders may ask for 90-day statements to verify history).

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/how-can-i-help-borrowers-navigate-down-payment-requirements

## Answer
Down payments are vital. FRFIs (federally regulated financial institutions) carefully check the source to ensure it's from the borrower's own resources. However, there are exceptions to consider. Here's the breakdown:

## Institutional highlights
- You can use gifted money for your down payment, just make sure you have a signed letter stating you don't have to pay it back.
- Borrowing money for your down payment can make it harder to get approved for a mortgage.
- You usually can't use incentives or rebates for your down payment unless it's part of a government-funded affordable housing program.
- Lenders pay extra attention to mortgages within affordable housing programs.

## Related guide
- https://ratellow.com/guides/first-time-buyer-rebates

## Sources
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0