Gifted down payment in Ontario.

Underwriters need to confirm the funds are a true gift (not a loan), came from an immediate family member, and have a clean source-of-funds trail.

Ontario adds its own layer. Two distinct files: GTA/GTHA condo + freehold underwriting, and the rest of the province. Lenders treat them differently on appraisal risk. That matters here because underwriters are already scrutinizing the income side of a gifted down payment file — a property or program complication local to Ontario can push a marginal file over the edge.

Provincial Land Transfer Tax on a sliding scale; Toronto adds a municipal LTT that effectively doubles the bill inside city limits.

Programs to check eligibility for in Ontario:

• First-time buyer LTT rebate up to $4,000
• Toronto municipal LTT rebate up to $4,475
• Federal First Home Savings Account (FHSA)

• Signed gift letter on the lender's template
• 90 days of statements from the gifting account
• Proof of transfer from the gifter to the borrower
• Source-of-funds documentation for the gifter if the deposit is recent or large
• Gifter's government-issued ID (FINTRAC requirement at most lenders)

Ontario nuance: Employment letters from Ontario employers are scrutinized for probation clauses; underwriters frequently call HR to verify.

• Status certificate review on condos is non-optional, not a formality.
• Some lenders cap exposure in specific GTA postal codes.
• Property tax estimates on new builds often understate year-2 assessments.

Underwriter view of this scenario: The signed gift letter alone is not enough. Underwriters trace the funds back through the gifter's account and may ask for explanations on large recent deposits.

• Transfer the gift at least 30 days before closing
• Keep the funds in a single account once received
• Have the gifter retain statements showing the source of the gift on their side

• Gift coming from a non-immediate-family member (friend, employer, distant relative) — most A-lenders refuse.
• Gift documented as a 'loan' anywhere — in texts, emails, or the gifter's notes.
• Source of the gifter's funds that cannot itself be explained.