Downpayment & Closing

Purchasing Walkthrough

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.

Downpayment & Closing

Personal Savings

Savings/Chequing

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.

Personal Savings Map 1
Downpayment & Closing

Investments

RRSP/TFSA/Mutual Funds

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.

Investment Downpayment
CRA Home Buyers Plan
Downpayment & Closing

Gifts

From Family

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.

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

It's All in the Hub

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. 

Client Hub

Closing

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 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.