Congratulations! One of the biggest hurdles in purchasing your new home is saving the down payment.
It’s important to know that at no point will the lender ever have your downpayment funds.
We are required to verify a 90 day history of where the funds will come from and that you have access to them. We are required by law to provide 90 day history to discourage money laundering.
Down Payment can come from a combination of examples below.
Multiple bank accounts
If your down payment is in multiple accounts (chequing / savings / TFSA) we will need a 90 day online print off of each bank account + proof of account ownership (via void cheque or home screen print off showing name and account #) The Bank statements CANNOT be altered in any way (example: blacked out)
90 day history of RRSP (online is fine) + proof of the RRSP’s being cashed. (Please wait to cash your RRSP’s until AFTER you have made an offer and we have secured your financing)
2 week print off of bank account showing the previous balance + Proof of gift deposited into account and then balance after gift is in account.
Gift letter (provided by our office) filled out and signed by you and the person gifting you the funds.
Sale of asset (like a vehicle)
2 week print off of bank account showing the previous balance + Proof of sold asset deposited into account and then balance after sale proceeds is in account to date.
Proof of ownership of asset and sales contract.
Sale of a property (Bridge Financing is Available if required)
Unconditional sales contract of old property
Copy of mortgage statement showing current balance to confirm equity available.
Borrowed off of a secured or unsecured line of credit / loan.
Copy of statement confirming current balance, credit limit and minimum payments
Your lawyer or notary will collect the funds. The amount that you paid as a deposit to your realtor (or in the case of a private sale- the lawyer) will be deducted from what is needed for your downpayment. Your deposit is never in addition to your downpayment.
Prior to coming in to sign, the lawyer or notary will ask you to bring in the exact amount owing, which will be the remainder of your downpayment, closing costs, and legals fees.
You will be required to bring in an exact amount- to the penny. The amount will need to be brought in as a bank draft. It is important that you communicate with your lawyer to make sure that you know how much money to bring in and when to bring the funds.