Can Parents Gift Your Presale Down Payment in BC? (2026 Rules)

Yes: parents can gift you the down payment for a BC presale, and Canada has no gift tax. Lenders just need a signed gift letter from immediate family, a clean paper trail for the money, and proof it is a true gift, not a loan. On a $700,000 presale, the minimum down payment is $45,000, and a $50,000 family gift covers it. For many first-time buyers in Surrey, Langley and Coquitlam, the family helps. The problem is that presales are different from resale: you pay deposits for years before the lender ever sees your file. Get the timing of a gift wrong and the money can be hard to prove at completion. Here is how to do it right in 2026. The Rules Lenders Apply to Gifted Funds Canada has no federal or provincial gift tax, and the giver does not report a cash gift to a child. What matters is the lender's rules, not CRA's. Requirement What lenders typically ask Who can give Immediate family: parents, grandparents, sometimes siblings lender-specific Gift letter Signed by the giver: amount, relationship, and "no repayment expected" Paper trail Giver's statement showing the withdrawal and your statement showing the deposit No strings No loan, no ownership claim, no payments back to the giver How Much Down You Need in 2026 Minimum down payment is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million CMHC and Government of Canada rules . Homes of $1.5 million or more need 20%. Under 20% down, mortgage default insurance applies. Worked example: $700,000 presale Item Amount 5% of first $500,000 $25,000 10% of remaining $200,000 $20,000 Minimum down payment $45,000 6.4% Typical staged deposits about 15% $105,000 over roughly 12 months 5% GST $35,000 Fully rebated for eligible first-time buyers up to $1M Notice the gap: deposits about $105,000 can exceed the minimum down payment $45,000 . Deposits are credited toward your down payment at completion, so any money you can trace into the deposit schedule counts. This is where early planning pays off. The Presale Timing Trap Your lender looks at your funds at completion, often 2 to 4 years after you sign. They want to see where each deposit dollar came from. A large cash deposit with no source is the…

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