MOST LENDERS WILL HONOUR FUNDS THAT ARE A GIFT FROM FAMILY AS AN ACCEPTABLE DOWN PAYMENT. OF COURSE A LETTER SIGNED BY THE DONOR AND STATING IT IS A TRUE GIFT AND NOT A LOAN IS USUALLY REQUIRED. IF THE MORTGAGE REQUIRES MORTGAGE LOAN INSURANCE, CMHC REQUIRES THE GIFT MONEY TO BE IN THE PURCHASER’S POSSESSION BEFORE THE APPLICATION IS SENT TO THEM FOR APPROVAL. IF MORTGAGE LOAN INSURANCE IS PROVIDED BY GE CAPITAL, THIS IS NOT A REQUIREMENT.