Short answer
No. If repayment is expected, the funds are not a genuine non-repayable gift. Disclose the loan or shared-equity arrangement so the lender can include the obligation and decide whether it is acceptable.
The client problem behind the question
The buyer needs the money to qualify and fears that calling it a loan will reduce the approval amount.
What the official guidance establishes
CMHC’s application guidance describes an eligible family gift as non-repayable and requires a signed letter. Lenders verify the funds and may ask for donor statements and transfer evidence.
Where the answer can change
A loan may be acceptable under some conventional, alternative or private programs if disclosed. A private family agreement cannot override a false statement made to the lender or insurer.
A practical Ontario example
Illustration only: Parents transfer $75,000 and expect $800 monthly repayment. Calling it a gift hides a real monthly obligation and changes the borrower’s capacity to carry the mortgage.
What to do before committing
Decide whether the funds are a gift, loan, ownership contribution or shared equity before applying. Put the real arrangement in writing and let the broker place the file correctly.
Questions Rajiv would ask
- What deadline, condition or closing problem must be solved?
- Which facts are confirmed by original documents and which are still assumptions?
- Which law, insurer rule or lender policy applies to this exact transaction?
- What happens to the cash requirement and monthly payment if the first option fails?
- What is the practical route back to lower-cost financing, if temporary financing is used?
Rajiv’s broker perspective
A difficult mortgage can be solved only with accurate information. I would rather explain a real income gap, credit issue or closing shortfall to the right lender than submit a polished story that the documents do not support. The legitimate options may include another A policy, alternative/B lending, an MIC or private bridge, a larger down payment, a delayed closing or a lower purchase price.
Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Would a second opinion help before you commit?
Send Rajiv the property, deadline, financing concern and the documents already available. He can identify the missing questions, compare practical mortgage routes and explain the next step in plain language.