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Gift Letter Form For Mortgage for Singapore

Gift Letter Form For Mortgage Template for Singapore

A Gift Letter Form For Mortgage is a formal document used in Singapore's property market that evidences the transfer of funds from a donor to a recipient specifically for use in a property purchase. The document complies with MAS regulations and Singapore Banking Act requirements, providing legal documentation that the funds are a genuine gift rather than a loan. It includes detailed information about both parties, the gift amount, and specific declarations required by Singapore financial institutions for mortgage approval processes.

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What is a Gift Letter Form For Mortgage?

The Gift Letter Form For Mortgage is essential in Singapore's property market where buyers often receive financial assistance from family members for property purchases. This document serves as official verification for mortgage lenders, ensuring compliance with Total Debt Servicing Ratio (TDSR) requirements and anti-money laundering regulations. It confirms the non-repayable nature of the gift, documents the source of funds, and includes necessary declarations required by Singapore financial institutions. The form is particularly important when buyers rely on gifted funds for their down payment or purchase price, helping lenders assess the genuine nature of the buyer's financial capacity.

What sections should be included in a Gift Letter Form For Mortgage?

1. Donor Information: Full legal name, NRIC/Passport number, address, and contact details of the gift giver

2. Recipient Information: Full legal name, NRIC/Passport number, address, and contact details of the gift receiver

3. Gift Details: Specific amount being gifted, currency, and intended use for mortgage

4. Property Details: Address and details of the property being purchased with the gifted funds

5. Source of Funds Declaration: Statement explaining the origin of the gifted funds

6. No Repayment Statement: Clear declaration that the gift is not a loan and no repayment is expected

What sections are optional to include in a Gift Letter Form For Mortgage?

1. Relationship Declaration: Statement of relationship between donor and recipient, used when required by specific lenders

2. Tax Implications Acknowledgment: Statement acknowledging understanding of tax obligations, used for large gifts

3. Conditions of Gift: Any specific conditions attached to the gift, used when applicable

What schedules should be included in a Gift Letter Form For Mortgage?

1. Proof of Funds: Bank statements or other documentation showing source of gifted funds

2. Identification Documents: Copies of NRIC/Passport of both donor and recipient

3. Bank Transfer Records: Documentation of the transfer of gifted funds when already completed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Mortgage Document

Cost

Free to use
Relevant legal definitions




















Clauses



















Industries

MAS Regulations: Monetary Authority of Singapore regulations including Total Debt Servicing Ratio (TDSR) framework, Mortgage Servicing Ratio (MSR) requirements, and guidelines on residential property loans

Singapore Banking Act: Chapter 19 of Singapore laws covering regulations regarding bank lending and mortgages, and requirements for documentation and declarations

Stamp Duties Act: Chapter 312 of Singapore laws covering Additional Buyer's Stamp Duty (ABSD) implications and potential stamp duty obligations for gifts

Income Tax Act: Chapter 134 of Singapore laws covering tax implications of monetary gifts and requirements for declaration of gifts

AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations covering source of funds verification requirements and due diligence requirements for large monetary gifts

Singapore Contract Law: General contract law principles covering requirements for a valid gift (intention, delivery, acceptance) and legal capacity of parties

Singapore Civil Law Act: Chapter 43 of Singapore laws covering provisions regarding the transfer of property and requirements for written documentation

Teams

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