How To Provide Proof Of Downpayment with Tammy Wandzura

How To Provide Proof Of Downpayment

For most, buying a home is one of the biggest financial decisions in life. One of the primary requirements for securing a mortgage is providing a down payment. Here’s a breakdown of what you should know:

  1. Federal Regulation: Proving your down payment is not just a lender’s requirement but a federal regulation.
  2. Bank Statements:
    • 90-day transaction history is needed, including the most recent transactions to the present day.
    • Required from all accounts you’ll use for the down payment (Savings, chequing, RRSP, TFSA, investments).
    • All large transfers between these accounts within the last 90 days need to be substantiated.
  3. Organization is Key:
    • To simplify the process, use one main savings account.
    • Ensure a clear ‘paper trail’. Any transfers or large deposits must be traceable.
  4. What’s Acceptable?:
    • Consolidate savings into one account for clarity.
    • Before shifting funds, remember you’ll need to validate each transfer.
  5. For First Time Home Buyers:
    • You can withdraw up to $35,000 from your RRSP without immediate tax implications for 15 years.
    • This amount needs to be paid back at 1/15th annually.
    • Retain all documents linked to this withdrawal for tax purposes. You’ll need to start with Form T1036.
  6. Other Valid Down Payment Sources:
    • Sale of Your Previous Home: A valid source of funds. Required documents include the offer and mortgage statement or the statement of disbursement from the lawyer.
    • Gifts: Gifts from immediate family members are accepted. A signed gift letter and proof of deposit are typically required.
  7. Verification is Crucial: All significant deposits into your account within the past 90 days must be verified.
    • Selling a car? Provide a bill of sale.
    • Got a year-end bonus? A pay stub will do.
    • Income tax refund? You’ll need the Notice of Assessment.
  8. Unacceptable Funds:
    • Gifts from friends, sale of goods without proper documentation, unexplained deposits, loan repayments from friends, or cash tips (like those for servers) are not accepted.

Remember: Transparency and organization are essential. Each deposit should be traceable, making the process smoother and faster.

  • Very hectic mortgage made easy and stress-free.

    Tammy and her assistants Belinda and Marie were so helpful and professional. They made a very hectic, time-sensitive and slightly complicated mortgage pre-approval easy, smooth and as stress free as possible. They answered all of my questions quickly and without judgement, and worked around the clock to get the approval through before financing conditions needed to be lifted, which was a really tight timeline. I would absolutely use Tammy again and recommend her brokerage to anyone who has complicated mortgage approval needs. Or if your needs are simple, I can only imagine how fast and easy THAT process would be with Tammy!

    Chelsea J.

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