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Downpayment

Walkthrough

One of the biggest challenges with purchasing a home is accumulating the downpayment. The minimum downpayment legally required is 5% of the homes purchase price. Here are common down payment sources.

Savings Jar
Personal Savings

Accumulated savings account for the majority of a first-time homebuyers down payment.

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Investments
Investments

Under Canada's Home Buyer's Plan (HBP), you can withdraw up to $35,000 from an RRSP when purchasing a home. Investments like a TFSA or Mutual Funds can also be used.

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Gift
Gifts

Gifted Funds from an immediate family member can also be used as or towards the down payment. Each lender will have specific terms and conditions that apply to this down payment source.

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Downpayment

Personal Savings

When using personal savings as a down payment, it is important to provide a complete history of those funds. A 90-day history is required, bank statements showing these funds will be required. Please ensure the following information is visible on those statements:

  • Minimum 90-day History

  • The Name on the Account

  • The Account Number

  • The Current Balance

  • The Transaction History

  • (Redacted statements will not be accepted)

If there are large incoming transfers, including e-transfers, cash or cheque deposits, we will have to provide history for those transactions. you will be asked for a 90-day history for those accounts as well.

Personal Savings Map 1

PRO TIPS

  • Transfer all of the down payment into one account

  • Do this asap, so statements are easier to retrieve

  • Avoid using an account with a large number of transactions

  • Avoid multiple transfers when possible

  • Use Screenshots from a desktop computer, a mobile screenshot will not provide all necessary information

Downpayment

Investments

When using investments as a down payment, it is important to provide a complete history of those funds. A 90-day history is required and Investment statements would be requested. Please ensure the following information is visible on those statements:

  • Minimum 90-day History

  • The Name on the Account

  • The Account Number

  • The Transaction History

  • (Redacted statements will not be accepted)

Investment Downpayment

PRO TIPS

  • Transfer all of the down payment into one account

  • Do this asap, so statements are easier to retrieve

  • Avoid using an account with a large number of transactions

  • Avoid multiple transfers when possible

  • Use Screenshots from a desktop computer, a mobile screenshot will not provide all necessary information

Downpayment

Gift

When using a gift as a down payment, it is important to provide a complete history of those funds. A 90-day history is required for the funds being gifted. Bank statements from the “Donor” as well as a signed Gift Letter, which I will provide, are required.  Please ensure the following information is visible on those statements:

  • Minimum 90-day History

  • The Name on the Account

  • The Account Number

  • The Current Balance

  • The Transaction History

  • (Redacted statements will not be accepted)

If there are large incoming transfers, including e-transfers, cash or cheque deposits, we will have to provide history for those transactions. you will be asked for a 90-day history for those accounts as well.

Gifted Funds

PRO TIPS

  • Transfer all of the down payment into one account

  • Do this asap, so statements are easier to retrieve

  • Avoid using an account with a large number of transactions

  • Avoid multiple transfers when possible

  • Use Screenshots from a desktop computer, a mobile screenshot will not provide all necessary information

Downpayment

Making the Down Payment

The down payment is due upon the closing appointment with the lawyer. The exact total will be provided to you when the lawyer is ready to close. Below is a breakdown on what that total looks like.

Ex. $250,000 Purchase

Check these out!

More great resources to at your disposal. Check out other examples of required material when securing a mortgage and other great tools in the Client Hub.

Document Examples
Client Hub