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.

  1. 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
  2. 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
  3. 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
  4. 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!!!!!