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?”


In Canada…it’s usually only an acceptable source if it comes from one of the following:
Personal Resources. NOT CASH…rather Proven Savings in either a Bank or Investment Account. Sorry…the money hidden under the mattress or buried in the Mayonnaise Jar in the back yard just won’t be acceptable.


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.

Gift from Blood Relative (OR – Legal Guardian). Blood relatives can GIFT funds in the true meaning of the word…they GIVE it to you and sign a declaration it is a true gift and does not have to be repaid!

What is a Blood Relative?

Sibling, Parent, Grand Parent, Aunt/Uncle.

Sorry cuz’n…you can’t do it!


Borrowed from a Financial Institution. This one is a SPECIAL Privilege reserved for those who have Exceptional Credit and can Afford the Monthly Payment along with all of their other debts according to what the Mortgage Rules permit (That’s Next Week’s Blog!).

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!