DOWN PAYMENT - 90-Day History

When purchasing a property you will need a down payment. Whether you put 5% down payment or 35% down payment, lenders need to know where the money is coming from. Federal regulations requires the lenders to collect documentation that proves where the money is coming from. This helps to prevent money laundering and mortgage fraud.

The standard rule for mortgage down payment is a 90-day history of your bank account that proves the money is in your account. If the money has not been in your account for 90-days, then we need to know where it is coming from. We need to trace where the money is coming from for a 90-day history.

Examples:
   1. If you are redeeming some RRSP or investments as your down payment (in whole or in part) then we need a 90-day history of your investment statement. We also need to see that the investments have been withdrawn and we need to see the funds deposited into your bank account. Everything needs to match.

   2. If you have a separate savings account that you are using for the down payment, then we need to see a 90-day history of the savings account. We also need to see the deposit on the funds into your bank account which should match the withdrawal from the savings account. Everything needs to match.

   3. If you are receiving a gift from an immediate family member as part of your down payment then we need to see a 90-day history of the family member's bank account that is giving the gift. We also need to see the funds deposited into your account which should match the withdrawal from the giftor's account. Everything needs to match. 

If the down payment is coming from multiple different sources, then you will need a 90-day history from all sources. Have I mentioned yet that everything needs to match? Everything needs to match.

Contact Us
For more information on down payment, contact your local Mortgage Broker, Sean Stewart at 905-427-9596 or sean@seanastewart.com