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What you need to know about your downpayment.


Image by courtesy of Mortgage Intelligence

You have got your downpayment sorted out and you are ready to go ahead with buying your home. Congratulations! You will need to verify that downpayment for your mortgage approval.  It is a mandatory requirement by all lenders to protect against fraud. This is also to prove that you are not borrowing your downpayment, which changes your lending ratios and potential approval. Here is how you should prepare:

  1. Provide bank statements covering a three month period of your bank account(s) where you have been assembling your downpayment. It is critical that your name is linked to the account(s); some online banking print outs do not show names of account holders.
  2. If you had any large deposits, show its source i.e. if you sold your car, show a copy of the bill of sale. If you transferred money in from another account, bring the records for that account too.
  3. If all or part of your downpayment will be a gift, a gift letter must be signed. A bank statement from the giver will verify the funds. Be prepared to show the funds deposited to your account no later than 15 days prior to closing. Gifted funds are only acceptable from immediate family members (parents, grandparents, siblings).
  4. If using RRSP money, provide a 3-month history of the account. If you are withdrawing under the Homebuyer’s Plan, the funds must have been in the account for 90 days.
  5. If you are getting money from outside the country, get the money into Canada at least 30 days before funding, and provide a 90 day confirmation from that location.
  6. Regularly deposit all cash in the bank, don’t stockpile at home.
  7. If your downpayment is coming from the sale of your home, provide a firm contract of purchase and sale and the current mortgage statement.
  8. You will also need to verify that you have an additional 1.5% of the purchase price to cover closing costs.


Speak to experts who are knowledgeable on mortgage downpayments to get the advice you deserve. Contact the team at at 1 866 452 -1100 to speak to an agent or to get pre-approved apply now through our secure website.


David Hetti is a full time Mortgage Broker with Mortgage Intelligence (FSCO Lic MO8002434) David is the Director of Operations at Mortgage Intelligence Oshawa and heads a team of full time licensed Mortgage Agents serving all of Ontario. David is also a licensed Insurance Consultant.

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