Savings/Non-registered Investments:
Recent statements or online printouts showing the financial institution, client name and account number. Funds must be on deposit with a Canadian financial institution. If this is an investment account (TFSA, stocks, bonds, or mutual funds), lenders may also want to see the redemption of the investment and the corresponding deposit to the chequing or savings account.
RRSPs:
Recent statements or online printouts showing the financial institution, client name and account number. Lenders may also want to see the redemption of the RRSP and the corresponding deposit to the chequing or savings account. If the client is a First Time Home Buyer, then they are permitted to withdraw $35,000 from their RRSPs tax-free. If the client is not a First Time Home Buyer, then withholding tax applies on the amount of RRSP being withdrawn.
Sale of Existing Property:
Contract of purchase and sale along with recent mortgage statement or online printout. Ensure the online printout has the client’s name, mortgage number, and property address. Some lenders may also want the MLS for the property being sold. If the sale has already been completed, the lawyer's statement of adjustments/order to pay to show the net sale proceeds will be required, along with banking history showing the deposit.
Gifts:
Lenders accept gifts for the down payment from immediate family members (parents, grandparents or siblings) for owner-occupied purchases. Spousal gifts may be accepted on exception. Gifted down payments on rental property purchases are rare. Every lender requires their own form letter to be completed and signed stating the relationship of the giftor, the amount of the gift and that it is not to be re-paid. Banking history showing the deposit of the gift into the client’s bank account must be provided. If the giftor is providing funds directly to the legal professional, then confirmation from the legal professional showing receipt of funds is required. Some lenders may also want a statement from the giftor confirming the funds are available, especially if the gift is received close to the funding date.
Borrowed Funds (if allowed by the lender):
Copy of the loan agreement or line of credit showing funds available is required. The payment of the borrowed funds also has to be added to liabilities and debt serviced.