Down Payment Documents

Down Payment documents is a nice way of saying "bank statements" - and there will be no shortage of requirement here. 

For Canada's Anti Money Laundring Requirements (AML) we need to show 90-120 days of account history for EACH ACCOUNT that your downpayment is in. If you transfer funds from account A to account B - we will need documentation for at least 90 days (3 months) for each of those accounts.  Did you transfer $5000 from Account C to Account A? Well, now I need 90 days for Account C as well. 


My point here? In the 4 months before you pull the trigger on making an offer for a home, try not to move any money around. 
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Types of Down Payment Documents

You’ll need documentation that proves you have the funds for a down payment. The documents you have to produce may depend on where you plan to source your down payment funds.

 

  • Statements for savings or investments: If using your savings, provide bank statements for an active savings account showing activity from the last 90-120 days. Submit a written document detailing your liquid investments if using those funds.
  • RRSP withdrawal documentation: Canadian first-time home buyers can withdraw from their Registered Retirement Savings Plan (RRSP) accounts as part of Canada’s Home Buyer’s Plan (HBP). If you’re eligible for the HBP, you’ll need to submit documentation that details your withdrawals to your mortgage lender.
  • FHSA: To use the FHSA withdrawal, you must buy a qualifying home within 30 days of the withdrawal and meet the first-time homebuyer requirements.
  • Gift letters: If a close friend or family member is helping out with your down payment, you’ll have to provide a gift letter stating that this money is a gift, not a loan to be paid back. This letter should include the name and signature of the gifter, and the amount being gifted.

What is a Bank Statement

 

A bank statement is an official document provided by your bank or financial institution that shows a detailed record of your account activity over a specified period, typically a month. It includes:
 

  • Account Information: This typically shows your name, account number, and the period covered by the statement.

  • Transaction History: The statement lists all deposits, withdrawals, transfers, and any other transactions made within the statement period. It also includes the date, description, and amount of each transaction.

  • Account Balance: The statement shows your starting balance, all changes due to transactions, and the final balance at the end of the statement period.

 

 

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Proper Bank Statements

 

As previously mentioned, we need 4 months of bank statements for your down payment account (and sometimes to prove other forms of income) and if you've transferred money between accounts or made any large deposits, then we will need statements for those accounts as well to show the source of the transferred funds.

When you submit bank statements to your broker or advisor, please ensure it shows these very important things:
 
  1. Your name. Yes, the statement must have your name (or how else do we know that this is your account and not your neighbours?)

  2. The date range that the statement covers

  3. The account number

  4. NO REDACTED INFORMATION - No really. Please don't do it. We honestly don't care if you're subscribing to OnlyFans, or if you visit the beer store every day, I promise. 

If you must screenshot... 
 
If you send a screenshot in, or a recent transaction list that you've printed to pdf - please ensure that you've sent in at least one proper bank statement so that we can match up the account number to the official statements that show your name. 
Ideally, a screenshot would look like the one above, where it shows your name and account number. 
We generally will accept screen shots when an official statement hasn't been released for the current time period yet, and we need to prove that the funds are available, or that the bank draft to the realtor was made from the account. 

 

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