Gifted down payment are funds given to a mortgage applicant by an immediate family member to be used to qualify for a mortgage or simply to lower the mortgage amount. It is a very common and popular mechanism used by parents or siblings to support their family members financially without expecting the support being paid back
If you are planning to buy a home using a gifted down payment, you need to understand who can this Gifted down payment may come from, and, what are the mechanisms to be followed for it to be accepted.
The Government of Canada recently announced the minimum down payment requirement will be increased from 5% to 10% on the portion of a purchase price for a property that is above $500,000 but less than $1 million on insured mortgages. This change will take effect on February 15, 2016.
May I help you with your mortgage?
Who can offer a Gifted down payment?
Immediate family members (i.e. parent, grandparent or sibling). Gifts from spouses are not acceptable.
How can a Gifted down payment be used?
A Gifted down payment can be used provided that the funds are properly verified, are non-repayable and all other characteristics of the borrower are acceptable. In most cases Gifted down payment is required to be on the applicants’ account 15 days until the time of closing.
A letter must contain the following information
The amount of the gift
A statement that the gift is non-repayable and is from non-borrowed funds
The full names of the mortgagor and Giftor (s),
The relationship between the mortgagor and the giftor(s) and
The reason for the gift.
The deposit or cheque confirming the funds have been received must be obtained.
Acceptance of Gifted down payment is subject to verification
Debt consolidation can be quick and easy using the equity in your home to avoid paying high-interest rates.
Call for an appointment, or apply online, with our products and services you lower your interest rates while allowing to make one easy payment per month.
When will you be debt free? Learn what affects your debts and estimate below your current debt free time
Unsecured debts (credit cards, car loans or others) offer a higher interest rate than a mortgage, while they help in the short period to purchase the goods, they also lead to a longer period and higher cost before the loan is paid.
Debt consolidation is a new loan that can help eliminate all or some existing higher interest rates loans
Debt consolidation should be considered not only when you are getting into financial problems, you can also consider it as an opportunity for new investment and wealth consolidation.
Debt consolidation assessment practices are, quick, effective, easy and offer the following immediate benefits:
Save of thousands of dollars on interests based on the current debts
Cash flow relieve
Secured lower interest rates
Comfortable amortization periods
Credit scores improvements
Allow equity funds to be used towards other new investments
Using the equity in your home offers an easy, cheaper quick and comfortable way out of debt.
Use the credit card debt calculator below to estimate when will you be debt free
The non owner occupied rental mortgage loans help you qualify by adding the monthly rental income to your current income. As a result you are able to purchase or refinance a rented property and let the property pay for itself with the rent
Scenario: You currently have a steady job or business, a decent credit score, some savings but no time to start another business or job, and you would like to earn residual income from a real estate property.
The non-owner occupied rental mortgage is designed for those who would like to become real estate investors.
The Toronto mortgage agent of Mortgage Edge to get your first, second mortgage or line of credit that you need, apply online and deal with many mortgage lenders
We can save you thousands of dollars on your residential mortgage, complete your online application, click on the top right banner now
From your Toronto mortgage agent, you have quick personalized service and get your mortgage loan approved.
Don’t worry about your credit, submit your online application and let’s get it done now!
If you already own a property, request a property value & comparable sales report when you complete your online mortgage assessment
If you have questions about what type of mortgage you need, learn about the following mortgage products
Whether you are looking for a mortgage to purchase a home, refinance your existing mortgage and your other loans or credit cards in order to pay less interest, or if you are looking for a commercial mortgage to finance your business, you can call me to help you get that financing that you seek.
Let’s get it done now
Request your *mortgage assessment free*, apply online and get a free one on one meeting
Mortgage Edge: a successful group of mortgage brokers in Toronto and servicing the entire province of Ontario with over 25 years of experience helping clients obtain and manage their mortgage with a unique philosophy to serve and protect the consumer
Mortgage agents and Mortgage brokers at Mortgage Edge, are committed to helping you make an informed decision when it comes to your mortgage, considering your personal financial plan and major life goals to grow your wealth, your mortgage will be one of your most important financial tools
One of our commitments as mortgage agents and mortgage brokers is to advise you considering your personal financial plans, and life goals to grow your wealth, we work hard and smart to protect your interests
What do you need a Mortgage Broker for?
Do you need a mortgage advice?
Do you need a report on your property to see if you have equity that you can use?
Do you need a mortgage refinance?
Do you need a first or second mortgage?
Do you need a secured line of credit?
Do you need to take some equity out of your property?
About myself as your mortgage agent, with certifications from CAAMP (Canadian Association of Accredited Mortgage Professionals), and years of experience at Mortgage Edge, committed to the consumer and lenders licensed Mortgage brokers & regulated by the Financial services commission of Ontario I am also a member of IMBA (Independent Mortgage Brokers Association), we observe our code of ethics and a deep customer protection philosophy .