# What documentation is required for a gifted down payment to be compliant?

> Ensuring full compliance with regulatory standards hinges on meticulous documentation.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-documentation-is-required-for-a-gifted-down-payment-to-be-compliant

## Answer
Ensuring full compliance with regulatory standards hinges on meticulous documentation. The cornerstone is a comprehensive gift letter, explicitly stating that the funds are a non-repayable gift. Lenders are obligated to rigorously verify that the down payment is indeed a true gift, free of any expectation of repayment. Also, your credit history and background will be thoroughly examined to evaluate your reliability in repaying the mortgage. This process mandates your informed consent and adherence to privacy legislation, such as the Personal Information Protection and Electronic Documents Act (PIPEDA).

## Institutional highlights
- You'll need a letter from the gift giver confirming the money doesn't need to be paid back.
- Lenders will check to make sure your down payment is really a gift and not your own money.
- If you're using borrowed money for your down payment, expect extra scrutiny from your lender.
- Generally, rebates or incentives don't count toward your down payment, except for some government-backed affordable housing programs.
- Your lender needs your permission to check your credit history and will follow privacy rules.

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

## 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
- 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
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0