Yes, and it is extremely common — provided it is genuinely a gift, documented properly, and in your account before the lender looks.
Lenders in Canada routinely accept gifted funds toward a down payment from an immediate family member. It is one of the most common ways first-time buyers get into a home, and there is nothing irregular about it.
What lenders require is documentation, because they need to know two things: where the money came from, and that you are not obliged to pay it back.
Your lender will ask for a signed gift letter. Requirements vary by lender, but it generally needs to state who is giving the funds and their relationship to you, the amount, that the funds are a genuine gift with no expectation of repayment, and that no interest is owed.
Expect the lender to also want evidence the money actually moved — typically the funds sitting in your account, with a trail. Cash handed over is a problem; a transfer is not.
This matters more than people expect. If the money is repayable, it is a debt, and a debt changes the calculation of what you can afford — which is precisely what the lender is assessing. A loan disguised as a gift misrepresents your position to the lender, and that is not a small thing.
If your parents do want repayment, say so and structure it properly. A lender can work with a declared arrangement; it cannot work with one it finds out about later.
Families frequently intend something in between — "pay us back when you can, no rush". That is a lovely arrangement and it is not a gift. Have the conversation explicitly before the letter is signed, because the letter says something specific.
Rules on gifted funds, the required documentation and how much may be gifted vary by lender and change over time. Confirm the current requirements with a mortgage broker →