Congratulations on your purchase; I am so happy for you 😀

Please find the details of how I need to meet the down payment verifications to help us get to the financing goal line with as few hiccups as possible. 

The Rules for Down Payment

NOTE: I use 2% because closing costs are expensive. The lender requirement is only 1.5%.

Down payment is one of the trickiest parts of my job, and I must follow precise rules. Please know these are not my rules but Federal Banking Rules. I'm here if you have any questions. Please see below. 

First, please do not move money from one account to another until I have completed my part of the process. 

I know it may not make sense, but under the AML Anti-money Laundering rules, we need to show a 90-day history of all accounts being used for the down payment and the history for any non-labelled deposits over $2000.00. 

You may provide screenshots of your bank account(s), not a cell phone screenshot.

Please ensure that your name and the account number are visible. When providing bank screenshots, you may need two screenshots. One is to show the account(s), and the other is to confirm your name and accounts for account ownership.

Confirmation of the down payment should equal the down-payment amount and 2% of the purchase price to cover closing costs.

For Example, the Purchase price is $500,000.00. I am required to show the lender a down payment of $25,000 (5%) + $10,000.00 (2% for closing costs) = $35,000.00. 

Everyone must show the ability to pay the down payment and closing costs as proof of available funds at the lawyer's office. 

If you are a first-time buyer, you will still be required to show the ability to pay the 2% closing costs; however, you will receive your first-time homebuyer benefits at the lawyer's office.

Where is your down payment coming from? 

Deposit on Purchase 

The deposit cheque(s) was provided to the realtor, and the 90-day bank account history showed the funds removed from the account. The statement(s) must clearly show your name and account number as proof of account ownership. 

 

Savings 

I will need a 90-day history of the account where the funds are resting. The statement(s) must clearly show your name and account number as proof of account ownership.

 

RSP/TFSA or Investments

I will need a 90-day history of the account where the funds are resting. Or the most recent quarterly statement.

The statement(s) must clearly show your name and account number as proof of account ownership.

 

Gift 

  • The gift must come from a direct relative.
  • I will provide the gift letter - the letter is lender-specific
  • The bank statement showing the direct deposit of the gifted funds

 

Sale of your property

If the down payment is from the sale of your existing home, please provide:

  • The purchase agreement with all schedules and amendments, including the Notice of Fulfillment(s) (NOF) - Your realtor can also send this information.
  • MLS listing for the sale of your home
  • Mortgage statement to show the balance of your existing mortgage

 

If the home was sold previously

A Letter of Disbursement is from the sale of your home from the lawyer, you worked along with the bank statement showing the direct deposit of the fund.

I hope this helps. I know it's a lot. I'm here if you would like to discuss this further.Â