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A Gifted Deposit Letter is a crucial document in Canadian real estate transactions where family members provide financial assistance for property purchases. This document is required by mortgage lenders and financial institutions when a portion or all of a property down payment comes from a monetary gift rather than the buyer's own funds. The letter serves multiple purposes: it provides clear documentation of the gift's source, confirms the non-repayment nature of the funds, helps satisfy anti-money laundering requirements, and meets mortgage lender criteria for down payment verification. Typically used in residential property purchases, the Gifted Deposit Letter must comply with Canadian banking regulations and may need to be accompanied by supporting documentation such as proof of funds transfer and donor identification.

1. Date and Address Block: Formal letter date and recipient details, including mortgage lender and property buyer

2. Party Identification: Clear identification of the gift donor(s) and recipient(s), including their relationship

3. Gift Amount Declaration: Specific statement of the gift amount in numbers and words

4. Property Information: Details of the property being purchased with the gifted funds

5. Gift Purpose Statement: Clear statement that the funds are for home purchase/down payment

6. No Repayment Declaration: Explicit statement that the money is a gift and not a loan requiring repayment

7. Transfer Timing: Statement of when the gift funds will be/were transferred

8. Signature Block: Space for donor(s) signature, date, and witness if required