MortgageSource wrote:
Hi gs1905, please call me Warwick
Your parents would need to sign a letter provided by the bank which states the funds are a gift with no repayment required. The money would need to be in your bank account at least 15 days before closing your home purchase. There is no tax implication here in Canada, as it is a gift from your parents.
Let me know if any other questions
Hi, thanks for the help.
I'm paying the 20%, but my parents are paying the closing costs for us (are there tax implications on that? do we need to get a letter etc.). Hypothetically, if they were to transfer me funds and I pay for it through my own bank account, that doesn't count as income so how will the CRA even know?
Would it be safer for them to pay the closing costs directly (in their name) or transfer funds to me and I do it in my name.
Thanks again - this is very helpful.