There are 4 Main Criteria required to satisfy your potential Lender.
Most people believe "just having a down payment is good enough" when trying to get a mortgage.
Most people would be WRONG.
DON'T BE LIKE MOST PEOPLE! Be SMARTER.
Well...if you're reading this - you are already well on your way!
Here's the low-down on Down Payments.
The most important thing is not that you have a Down Payment...but rather WHERE DID IT COME FROM?
We're pretty stubborn about this. The reason we're so stubborn is because it's part of our Anti-Money Laundering efforts. We're taking a Bite out of Crime!
Seriously...it's one way we prevent Mortgage Fraud.
We will permit your Down Payment to come from one of the following sources:
1. Your Personal Savings: Bank Account, Investment Account, RRSP's, etc. (Be Prepared to show 90 Days History if your Down Payment is coming from one of these accounts - It's non-negotiable!)...if you have an existing Line of Credit on your current home...we'll even accept that as a traditional Down Payment when purchasing another property.
2. Gifted From a Blood Relative (it sounds gross doesn't it?): Parents/Legal Guardians, Siblings, Aunt, Uncle, Grand Parents, etc. You're going to need to have a Completed Gift Letter (you can download one HERE), and you will also have to prove the funds have been deposited in to your Bank Account...so that means you will have to bring in a Bank Statement showing the deposit...oh, and those little bank teller slips you get at the ATM won't cut it...put your big boy pants on and get a proper statement. Remember, you're applying for a Mortgage...you're not ordering a pizza! You have to expect that we are going to make you accountable. It's our Job...well, that and we love to watch you squirm!
3. You Can Borrow It - IF and ONLY IF you have Impecable Credit and can afford to make the payment along with your Mortgage and other Debts without being in the "poor house". This is a special program that we like to refer to as the "Flexible Down Payment Program".
In short...we don't make a lot of exceptions on this rule - make sure you speak to your Mortgage Broker about this if your Down Payment does not fit the above guidelines.
Here's our Phone Number...just in case you need to talk to someone now.