One of the main requirements to secure mortgage financing is the down payment. Here are some down payment do’s and don’ts.
DO
Source 5% for a down payment
Consider your own savings or RRSP account
Look at a 2.5 percent cash back
Gifted from a family member
DO
Show proof of your savings in cash or RRSP for at least 90 days in your own name
For money arriving from offshore account bring funds into Canada at least 30 days before completion of the purchase
DO
Keep clear records of your bank accounts
DON’T
Have too many accounts with multiple deposits that may confuse the source of funds
Transfer money around to different accounts as it can create confusion
Lend money to others when you are ready to buy and then put the money back in less than 90 days from buying as it will interrupt the savings history and cause you undue stress.
Remember – Keep it simple with record keeping and you will get an approval faster!