You do not pay taxes on gifts of money in Canada. For example, if your parents give you money to use as a down payment for a first home, no one has to pay tax on it. Neither the giver, nor the recipient pays taxes. If a gift is given for a down payment, a lender will need to see a gift letter to establish that the money is not part of a loan. There are other gifts that could have tax implications but those aren’t going to be typically used as a down payment on a home – if they are used as collateral, that will affect a mortgage contract and will have to be dealt with accordingly. That scenario is much more complex than a cash gift. Check with your accountant, mortgage broker and the Canada Revenue Agency for any of the non-cash gifts that someone might give or receive for the purposes of purchasing property.
by +Alan F Macdonald REALTOR® | Copyright © – gimme-shelter.com