Ontario Mortgage Agent Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

A Gift Letter would be required for a mortgage application when the funds for the down payment are given by a family member. This is because lenders want to ensure that the down payment is not a loan and that the borrower is not taking on additional debt.

Option A is incorrect because using funds from a borrower's savings account would not require a Gift Letter. This is because the borrower is using their own funds.

Option B is incorrect because using funds from a joint account with a spouse would not require a Gift Letter. This is because the spouse is considered to be an equal owner of the funds and the lender can easily verify their contribution.

Option C is incorrect because using funds from an inheritance would not require a Gift Letter. This is because the funds are considered a windfall and do not need to be repaid.

Therefore, the most correct answer is D, as it is the only option that accurately describes when a Gift Letter would be required for a mortgage application.