In canada an immediate relative can provide you with your down payment and this is evidenced by a gift letter a poorly written gift letter will waste time energy and lead to frustrations for everyone involved in trying to arrange your mortgage. The amount of money they are giving you exact dollar amount.
The letter must specify who is gifting the money where the donor s funds are coming from and explain the relationship between the donor and the borrower.
Gift letter sample for mortgage down payment. This is to ensure you can access the money for the mortgage down payment. Download a sample mortgage gift letter form. At a minimum a down payment gift letter should include.
Confirm that there is no expected repayment from the borrower to the donor. A gift letter for a mortgage down payment is a written statement that the funds are a gift with no expectation of repayment. It should explicitly mention that you are not expected to pay it back.
Gift letter template sample all loan programs require the following information in the mortgage gift letter. I do not expect or require repayment in any form for this gift. A gift letter for down payment certifies that the money you have received is a gift.
Sample gift letter for mortgage down payment sample gift letter 9 examples in word pdf within sample gift letter for mortgage down payment the best letter sample gift letter template template design in sample gift letter for mortgage down payment the best letter sample gift letter sample template design. Donor s name address telephone number. Donor name address phone number and relationship to recipient.
Your lender might give you a template to follow if you tell them you re using a gift for your down payment. A gift letter form will need to be provided along with any gifts received. Gift letter for a mortgage down payment format i hereby give my relationship to recipient recipient name a gift of amount of money to be used toward the purchase of the home located at address.
A statement verifying that they do not expect repayment. Without one your mortgage lender will consider the amount of another loan and likely deny your application. Relationship of donor to the borrower.
As a gift letter is a formal document it should be drafted using professional language. The gift letter must identify. Sample gift letter format.
This letter will be signed by the donor and state that the money is to be used for the sole purpose of purchasing a home and that there is absolutely no expectation of repayment. A short letter like this sample gift letter will cover all of the requirements your lender needs. If they don t give you a template you can use our sample template below and just enter your own information.
The lender will also verify that the funds that were gifted are actually in your account. The dollar amount of gift. The date of the gift donation.
The donor s name address phone number and their relationship to you. Don t let this happen to you. Address of the home being purchased in some cases.