Personal savings and/or investments can include, but is not limited to the following:
- chequing account funds
- savings account funds
- mutual funds
What is required
1) Three months of account history of the funds
- the best way to complete this is to log into your online banking, go to your e-statements, save and send the last three months of PDF statements
2) For those using RRSP funds please also include:
- RRSP withdrawal forms (once available)
- These are the forms that you will receive from your financial institution when you go to withdraw your RRSPs
- Proof of RRSP funds deposited into your account (once available)
- Once the RRSP funds have been deposited into your bank account, please provide a one month bank account statement showing the deposit of the funds
3) For those using TFSA funds please also include:
- Proof of TFSA funds deposited into your account (once available)
- Once the TFSA funds have been deposited into your bank account, please provide a one month bank account statement showing the deposit of the funds
Down payment verification is one of the largest, most detailed and time consuming parts of the mortgage process.
This is because your down payment verification needs to not only meet the lender's requirements but also Canada's anti-money laundering and anti-terrorist financing regime.
The earlier you can begin the process of collecting your down payment documents, the better.
For the verification, the lender needs to see a paper trail of all the funds that are being used for the downpayment. They will need to see the transactional history of the account and not just a summary of the account. In this transactional history they will be looking for what funds have gone into the account during the 90 days.
If funds have entered the account during the last 90 days, excluding employment income, the lender will require a history on the funds. When looking at your account history, if you see funds that entered the account, please also provide a 90 day history of the deposited funds as well.
- You are looking at your 90 day history of your chequing account and you see that 30 days ago there was a $20,000 deposit into your chequing account from your TFSA. For this example, please provide the 90 day history of your chequing account as well as a 90 day history of your TFSA.
- Now when looking at the 90 days history of your TFSA you see there was a deposit if $5000 from your savings account. For this example, please also provide a 90 day history of your savings account.
- This active will continue on until all the movement of funds have been verified.
Lenders will require this verification for any funds, that were not from employment income, over $1000 that have entered your account during the 90 day history.
In the time leading up to a real estate purchase, it's best to limit the movement of funds between accounts as it will create more account documents that you will need to provide.
If you have questions about the down payment or would like more information please contact me and we can review.
What you must know
- if the funds were held in more then one account during the past 90 days, you must provide the most recent 90 day history for the different accounts
- the statement or a combination of statements must show your name, the financial institutions name, your account number and the 90 day history
- lenders will not accept documents with information blacked-out
- lender's will not accept account summary pages that do not include the transactional history of the account
- mobile phone screenshots are not accepted
- cash deposits are typically not accepted by a lender for the down payment on a purchase
- the down payment cannot come from a personal loan, line of credit or credit card
DOES IT PASS THE TEST OR WILL IT BE REJECTED?
Does the document have the financial institution's name on it?
Does the document have my name on it?
Does the documents have my account number on it?
Can I see 90 days of account history (For example, from April 15 to July 15)?
Is the documents unaltered (For example, no information been blacked out or the document has not been written on)?
If you answered YES to all of the above, please send the document
If you answered NO to any of the above, the document will not be accepted by the lender
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