YOUR DOWN PAYMENT

Down payment verification is an incredibly important but also tedious part of your financing process.

Lenders are required to confirm that funds being used for down payment and closing costs are being sourced from your own savings (or gifted) and are not borrowed.

There are federal Anti-Money Laundering regulations that must be followed in order to ensure the previous requirements are being fulfilled.

ACCEPTABLE FORMS OF DOWN PAYMENT AND CLOSING COSTS

     🗹  Chequing/Savings

     🗹  Gifted Funds

          (owner occupied purchase)

     🗹  Investments

        (RRSP, TFSA, or other investments)

THINGS TO KNOW

• The actual transaction (payment of your closing costs and down payment) occurs at your solicitor's office shortly before your closing date.
• Taking money out of investments may have tax implications.
• Your deposit presented with your offer forms part of your down payment and must also be verified.

VERIFICATION OF CHEQUING/SAVINGS

• Three months history of bank statements.
• Statements must be un-redacted and show your name, or account number with a way to correlate ownership to your name.
• Internet statements are acceptable as long as we're able to correlate account ownership to the account number.
• Any large deposits, that cannot be correlated as pay deposits from pay stubs, may require further documentation. This is to remain compliant with Anti-Money Laundering regulations.
• Any transferred funds from other accounts or savings/investments will require 3 months of history from the savings/investment account and confirmation of withdrawal.

VERIFICATION OF GIFTED FUNDS

• Signed gift letter. Flawless Financing will send you a copy of the gift letter to be signed. We will need the following: giftor's name, address, phone number, and relationship to the borrower as well as the amount being gifted/not repayable.
• Gifted funds need to be from immediate family members.
• A bank statement will confirm the amount outlined on the gift letter has been deposited to your bank account and that it is currently available. This will be confirmed via a current bank statement.

VERIFICATION OF INVESTMENTS

• Confirmation of the current balance.
• Most recent quarterly statement OR most recent three months statements.
• Statements must be un-redacted and show your name, or account number with a way to correlate ownership to your name.