Down Payments on Home Purchases and Mortgages
When you purchase a home and require mortgage financing, lenders will want to confirm the source of the down payment for a variety of reasons. This is to ensure that there is no hidden loans or monthly obligations that would effect your monthly carrying costs, abide by the anti money laundering act and to also assess your suitability to carry the debt.
Here are some things to keep in mind when it comes to down payment sources.
- Gifted funds must be from an immediate family member (MOTHER,FATHER, SISTER, BROTHER, SIBLING, GRANDPARENT)
- Minimize transfers between bank accounts
- Out of country assets must be in Canada a minimum of 30-90 days depending on the lender
- Ensure RRSPs are in the account for a minimum of 90 days in order to use it towards the Home Buyers Plan
- Do not redact any bank account statements, alter or void out any items on your statements
- Make sure all statements include your name, bank name and account number clearly