Short answer
Possibly, if the lender and insurer accept the donor relationship and the gift is genuine, non-repayable and fully traceable. An overseas gift needs both the gift letter and evidence showing where the donor’s money came from and how it reached you.
The client problem behind the question
Parents send a large amount near closing, but the buyer cannot obtain donor statements or explain a cash deposit in the foreign account.
What the official guidance establishes
CMHC’s mortgage application guidance requires a signed gift letter for an eligible family gift and treats it as non-repayable. Lenders separately verify the source and transfer trail.
Where the answer can change
Eligible donors, statement periods, translations and proof differ by lender and insurer. If the buyer must repay the family, the money is a loan and must be disclosed. Foreign exchange changes can create a Canadian-dollar shortfall.
A practical Ontario example
Illustration only: Parents send the equivalent of $100,000, but fees and currency movement leave $96,000. The buyer still needs closing costs and the lender requests statements showing how the parents accumulated the funds.
What to do before committing
Confirm the donor and relationship before transfer. Prepare the signed gift letter, donor statements, source documents, wire receipt, currency receipt and buyer account entry, with certified translation where required.
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 newcomer file should be separated into six decisions: legal ability to purchase, Ontario tax, immigration status, income, credit and source of funds. Passing one does not pass the other five. I would test an insured or conventional A route first, then compare alternative/B or short-term financing only when the documents and future exit justify the extra cost.
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.