Holiday Season = Gifting Season. Gifting a Down Payment, Things to Consider

Posted On Dec 23, 2024

1. Disclosing the gift in a proper manner is important to your broker in order to prevent potential issues that could arise later. Non disclosure or improper disclosures could lead to your application being delayed, or denied. Also, you could get into an unaffordable mortgage after qualification. 
2. Plan for handling the gift money in case the mortgage needs to be dispersed or settled. Divorces can be bitter and separation of assets doesn't make it any easier. So addressing this could ease up some unpleasantness around marital splits.
3. Lastly, we often tend to help our loved ones while overlooking our own financial health. Hence, its important that the gift giver does not over extend themselves and have their generosity impact their financial stability.

Source: https://www.canadianmortgagetrends.com/2024/12/thinking-of-gifting-a-down-payment-this-holiday-season-heres-what-you-should-know/?utm_campaign=Daily%20News&utm_medium=email&_hsenc=p2ANqtz-8PYe8ijTpc2dBIU1OP4C8Oto9LE9XB7wMbd69hCCFuQbd173S5zrdZpHjb6TdOQu0hnz-kcJk6arR0d_CxP9BpXc0pzESRFdqZUuCiGuxtfMwySo8&_hsmi=339840701&utm_content=339840701&utm_source=hs_email