It's so much easier than that... spend the $500 and register the down payment 'gift' as a mortgage with basic terms. I.e interest only payments that the parent 'forgives' each month. This was also simplify estate planning measures if there is more than child in the family and not all have received a comparable gift. A few things of note... make sure to use a different lawyer from the one doing the property conveyance and first mortgage documents and register the 2nd mtg 30 days after close, unless you're a first time homebuyer in BcC then you'll have to wait one year (ask your real estate lawyer for details on why.