There are various allowable sources of down payment that you can use for your purchase. Most lenders will use in some form each of them however some are on a case by case basis.
- Saved funds – must show 3 months worth of bank statements to prove the accumulation and if there are large deposits you must prove the source of those as well
- Investment/RRSP – must prove the funds have been in the investment for at least 3 months and also show the withdrawal of the funds into your bank account
- Gifted Funds – must be from an immediate family member being a Mum, Dad, Grandma, Grandpa, brother or sister. Lenders use a gift form letter that must be filled out and signed by both parties then the funds need to show in your bank account
- Borrowed Funds – This program is called Flex Down and is a CMHC program that allows you to use borrowed funds however must show the monthly payment in the debt servicing. This program is NOT used by all lenders
NOTE: There is NO 0% Financing anymore ans has not been for a couple years of more!! If you see it advertised it is incorrect!!!!!
