There are several laws around tracking the money that is alloted for your downpayment. It can be very frustrating to provide the proper documentation. Here is what would be needed in several situations:
- Money Gifted from a Family Member: we will need a bank statement with your name on it that shows the deposit in the bank account. This should be in your account fifteen days prior to closing. We will also require a letter signed by the person gifting you the money. We will supply this at time of approval.
- Money Saved Through your Savings Account: we will need ninety days of transaction history. Not just the balance on your account. Any amount over $3000, aside from those labelled payroll, will require an explanation of where it came from. For example, if you sold a vehicle, we will need the bill of sale. If it’s for payment of side work, an invoice will do. If it is a deposit from an investment account, we will need the last quarterly statement from that account.
- Money Saved Through your Investment Account (TFSA/Stocks and Bonds/Mutual Funds/RRSPS): we need the last quaretly statement that you were provided.
- Money from the Sale of a Home: please provide us with the full purchase contract, statement of adjustment of the sale of your house, and bank statement showing funds in your account. If the sale of your home is closing the same day as your purchase, all we need is the purchase contract.
- Money from a Borrowed Source: we need a copy of the credit line or credit card statement.
It is very important to note that all statements will need to have both your account number and also your name.
Any funds being borrowed, we need to know upfront or it could change your approval.
If you are having trouble getting these statements, you can take a screenshot of your account. Here are some instructions on how to do this: https://www.take-a-screenshot.org/