Gift From a Family Member
- A monetary gift given to a mortgage applicant from his or her relative by blood or marriage. The gift cannot be money that must be re-paid and in some cases a written statement may be required by the lender as proof the funds are not a loan, but in fact a gift.
donation, given freely
Related Terms and Acronyms
- Buy-down — Definition,
- When a borrower or a mortgage broker "buys down" a mortgage rate, they make an upfront payment to the lender in order to lower the mortgage rate. A similar effect can be achieved by making a lump sum payment at the beginning of a mortgage term.
- Charitable Gift Annuity (CGA) — Acronym, Canada, Very Important,
➥ A form of planned giving.
- A method to facilitate charitable giving whereby an individual transfers assets to a charity in exchange for a tax deduction and lifetime retirement income payments from the charity.
- Community Property (CP) — Acronym, Important,
- Possessions, real estate and profits that a husband and wife receive during the marriage, excluding gifts and inheritances. Upon divorce, community property is distributed equally.
- Document Needs List — Definition,
- An inventory of papers a lender needs to underwrite a loan, usually including pay-cheque stubs, bank statements and tax returns.
- High-ratio Mortgage — Definition, Important,
- A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Private Annuity — Definition,
- An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.