The Bank of Mom and Dad: Gifted Down Payments and Helping Family Buy

By Lyndsy Pahl, Licensed Mortgage Broker · Serving British Columbia & Alberta · September 2026

Home prices being what they are, more and more families are pulling together to help the next generation buy. If you’re a parent wanting to give your child a boost, or a buyer lucky enough to be receiving help, there’s a right way to do it that keeps everyone comfortable and the mortgage on track. Here’s what to know.

Gifted down payments are common — and allowed

A gifted down payment — money from a close family member to help with the purchase — is a well-established, accepted part of Canadian home buying. Lenders see it regularly. The key is that it’s a genuine gift, not a loan you’re expected to repay, because a loan would change the borrower’s debt picture and how they qualify.

How to do it properly

To keep everything smooth, lenders typically want a couple of straightforward things:

• A gift letter. A simple signed letter from the giver confirming the money is a gift with no expectation of repayment. I’ll tell you exactly what it needs to say.
• Proof the funds arrived. Showing the gifted money in the buyer’s account before closing. Giving the gift with a little lead time makes this painless.

Handled this way, a gift is one of the simplest ways to strengthen a purchase.

Other ways families help

A gift isn’t the only option. Depending on the situation, families explore other routes, each with its own considerations:

• Co-signing or co-borrowing. A parent goes on the mortgage to help the child qualify. It’s powerful, but it’s a real responsibility — the co-signer is genuinely on the hook, and it affects their own borrowing. Worth entering with eyes open.
• Buying together. Some families purchase jointly. This works but calls for clear conversations about ownership and expectations from the start.

There’s no single “best” way — only the one that fits your family’s circumstances and comfort level.

Protecting relationships as well as finances

When family and money mix, clarity is kindness. The most successful arrangements I see are the ones where everyone understood the plan up front — who’s giving what, what’s expected, and how it affects each person. Part of my role is helping families have that conversation with the facts in front of them, so the help brings people together rather than creating tension later.

Let’s find the right approach for your family

Whether you’re giving a hand up or receiving one, I’ll walk you through the options in plain language and set the mortgage up correctly so the help does exactly what you intend. Reach out and we’ll figure out the smoothest path for everyone — at no cost to you.

Helping family buy, or being helped? Let’s set it up right. I’m your advocate, and I work for you — not the banks.

☎ (604) 762-0762 | ✉ lyndsy@theplacetomortgage.com
Apply online: r.mtg-app.com/lyndsypahl | mortgagewithlyndsy.com

This article is general information for families in British Columbia and Alberta as of September 2026 and isn’t financial, legal, or tax advice for your specific situation. Requirements for gifted funds and co-signing vary by lender — reach out for guidance tailored to your family.