One of the biggest challenges with purchasing a home is accumulating downpayment. The minimum downpayment legally required is 5% of the home's purchase price. Here are common down payment sources.
Getting Started
HomeBUYERS Start Here!
The Broker Advantage
Why Use a MB?
Tools
Mortgage Resources
Getting Started
HomeOWNERS Start Here!
The Broker Advantage
Why Use a MB?
Tools
Mortgage Resources
One of the biggest challenges with purchasing a home is accumulating downpayment. The minimum downpayment legally required is 5% of the home's purchase price. Here are common down payment sources.
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.
This diagram helps illustrate where the money originates and where it is transferred and ready for closing.
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)
This diagram helps illustrate where the money originates and where it is transferred and ready for closing.
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” and 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.
This diagram helps illustrate where the money originates and where it is transferred and ready for closing.
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
More great resources at your disposal, all in one place! The Client Hub is the one stop for all the Tools, Calculators, How To's, Walkthroughs one could need during their mortgage journey.
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 of what that total looks like.
Ex. $250,000 Purchase
Once the lawyer has provided the total required, you can make this payment using a Bank Draft/Note, a Certified Cheque, or any other method accepted by the law office.