In Canada – we are happy to see that buyers have their own “Skin in the Game”…as in they have some Money to contribute to their home purchase.
But here’s the clincher…we want to know WHERE it came from.
First off…let’s answer the question of “WHY?!”
Simple…we want to make sure it is legitimate and not from any Illicit source…like Proceeds of Crime, Fraudulent Activity, or Money Laundering, etc.
We in the Great White North prefer our homeowners to start off with a grain of decency…funny right? Who would have thought?
So, next question, “What is an acceptable Source of a Down Payment?”
GLAD YOU ASKED!
In Canada…it’s usually only an acceptable source if it comes from one of the following:
Be prepared to show a Minimum of 90 Days of Bank or Investment Statements that clearly identify both your Name and Account information…those online statements may not be acceptable.
What is a Blood Relative?
Sibling, Parent, Grand Parent, Aunt/Uncle.
Sorry cuz’n…you can’t do it!
Those 3 right there are pretty much “Lock Stock and Barrel” when it comes to Down Payments.
We do have some wiggle room…for instance you could sell something and provide proof of the transaction. Best advice would be to talk to your mortgage professional to be sure…and by “Mortgage Professional” – we mean “US”.
Can I use a Cash Back Mortgage for my Down Payment?
“NO you can’t.”
It was ruled out about a year ago. Sorry…Do Not Pass “GO” Do Not Collect $200.00!
That’s it for today everyone! See you next week for our final installment of the Big 4 Criteria!
Got Questions? Feel free to comment or Call us!
Jason @ FOCUS!