It’s important to know that at no point will use or the lender ever have your downpayment funds.
We are required to verify where the funds will come from and that you have access to them.
However, your lawyer or notary will collect the funds. The amount that you paid as a deposit to your realtor (or in the case of a private sale- the lawyer) will be deducted from what is needed for your downpayment. Your deposit is never in addition to your downpayment.
Prior to coming in to sign, they will ask you to bring in the exact amount owing, which will be the remainder of your downpayment, closing costs, and legals fees.
You will be required to bring in an exact amount- to the penny. The amount will need to be brought in as a bank draft. It is important that you communicate with your lawyer to make sure that you know how much money to bring in and when to bring the funds.