We all know we need a down-payment for a mortgage. This shows the lender you are serious and have “skin in the game”. All this is fine and dandy, but what are the rules:
- Your down-payment needs to be in your account for 90 days to obtain the best rate on your mortgage. Consequently, all lenders with low rates must abide by Anti Money Laundering mandates.
- Any large deposits made to your account in the 90 days must be verified, and proof provided. This can be investment withdrawal, RRSP’s, and gifts.
- Wire deposits must be proven from the source. Some countries on the non-sanctioned list will not be approved, while others are accepted.
- To many withdrawals and transactions/transfers can make your job proving these funds tedious. Make sure its organized or have your broker advise you on a direction.
- While some lenders and default insurers allow for a borrowed down payment, many lenders shy away from this.
Always chat with a Mortgage Agent/Broker on our team before getting in a situation that doesn’t work out for you based on the 3 Factors of your approval.
