HawthorneVillager.com

If your friend whom you have known for 15 years wishes to help you with down payment as they are really well off. When applying for my mortgage my agent is asking me to have my friend fill out a gift letter which seems fine. However it has one line where it says you need to be a family member.

Does that mean a friend is unable to help with the down payment even if they should fill out that gift letter as they dont qualify as immediate family? Anyone with insight thanks for you assistance

Hi and thanks for the question! I'm sure you've already found your answer by now, but i'll answer here just in case. I would immediately find another mortgage professional to work with. Gifts are NOT accepted from friends, and MUST be from an immediately family member. Parent, grandparent, or sibling. If the gift is from a friend, then this will not be accepted. The gift deposit into your account will make it difficult to get your mortgage finalized, even if you have additional funds from your own sources. You can read more about this in my blog on Everything You Need To Know About Proving Your Down Payment  https://www.easy123mortgage.ca/everything-you-need-to-know-about-proving-your-down-payment/

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Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

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