Money from the Philippines needs a paper trail

Many of us have family who want to help. A tita in Manila. A kuya in Cebu. Lolo who saved for years and wants to see us in our own home. This is beautiful. This is pamilya.

The good news: gifts from family abroad are 100% allowed. The bank will accept them. Your lender will use them for your down payment. But there is a way to do it right — and a way that can freeze your whole application.

Why the paperwork exists

This is not the bank being suspicious of your family. This is a rule every lender in Canada follows for every buyer. It comes from anti-money-laundering laws. The bank must show they know where your down payment money came from.

Envelopes of cash have no trail. A wire transfer from your family's bank to yours does. That is the only difference the lender cares about.

The clean way to receive a family gift

The gift letter

Every lender will ask for a gift letter. It is a short one-page paper that says:

Your lender or mortgage broker will give you a template. Send it to your family before the money moves. Do not wait until closing week. If lolo is not on email, ask a cousin to help him sign and scan it. Simple.

What to avoid

• Do not carry cash in a suitcase. There are rules for that too, and it does not solve the paper-trail problem.
• Do not accept the money as a "loan" now and say it is a gift later.If it has to be repaid, it counts as debt. That lowers what you can borrow.
• Do not deposit cash from an ATM in small amounts. That looks worse than one wire transfer.

The beautiful part

Do this the right way and your family's gift becomes part of the story you tell in your new sala. Not a source of stress. Not a delay. A gift that helped, exactly like it was meant to.