# What if part of my down payment is a gift?

> Gifts can be a game-changer, but proper documentation is crucial.

Category: Financing
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/financing/what-if-part-of-my-down-payment-is-a-gift

## Answer
Gifts can be a game-changer, but proper documentation is crucial. Gift letters are vital if a relative gifts a portion (or all) of your down payment. The letter *must* state the funds are a non-repayable gift, not a loan. Meet Michael, receiving $20,000 from his parents. His lender requires a gift letter stating the funds are a gift, not a loan, including the donor's details, relationship, gift amount, and a no-repayment statement.

## Institutional highlights
- If someone is gifting you your down payment, your lender will need a gift letter.
- The gift letter needs to confirm that you don't have to pay back the money.
- Good paperwork helps your lender approve your mortgage and get it insured.
- No specific minimum credit score of 600 is mandated by OSFI or CMHC; lenders set their own credit score requirements.
- Your mortgage payments and other debts can't be more than 39% of your gross income for housing costs, or 44% for total debt.

## Related guide
- https://ratellow.com/guides/borrowed-down-payment

## 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
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- 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