Lower Overall Cost
If you’re unable to provide the full down payment amount, receiving a gift from someone you know makes it easier to make up the difference. Having access to additional funds can also satisfy the lender and insurer requirements for closing costs.
Easier Qualifying Process
Depending on where you live, different qualifying criteria may apply when buying real estate in Canada. For example, some lenders have stricter requirements that need to be met before they will approve financing for certain buyers. However, with gifting money towards a down payment, it may become easier for lenders to approve these loans and make it simpler for those who may not qualify under standard conditions depending on their individual situations.
Receiving a gift towards purchasing real estate can be an excellent way for first-time home buyers or investors to reduce their overall cost and simplify the qualifying process when buying property in Canada. Before making any decisions about how much money is sufficient for gifting purposes, always consult with an experienced mortgage broker for guidance and assistance throughout this process!