Quote:
Originally Posted by MarchHare
Isn't that illegal? I thought you could not use borrowed money for a down-payment.
My parents gave me $10k to help with the down-payment when we bought our home. The bank required them to sign forms clearly identifying this as a gift and not a loan that had to be re-paid.
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It has to do with CMHC premiums. If you are lent the funds then the flex down premium applies. If you are gifted the funds from an immediate family member it is considered a traditional down payment.
I'm not sure how "traditional" it is for kids to get a handout of cash, but I guess it's possible.