What are bank statements for a down payment?

Bank statements provide detailed transaction history for any funds utilized towards down payments or closing costs. It’s crucial for these statements to display your name or be accompanied by supporting documentation to prove account ownership.

Why do lenders require bank statements for a down payment?

Lenders and brokers must comply with FINTRAC regulations (Anti-money laundering) mandated by the Government of Canada. They need to present a 90-day history of all funds used for down payments or closing costs.

How can I obtain my bank statements for the down payment?

If your down payment stems from savings or investments, you must provide a three-month history (as per Canadian Anti-Money laundering rules). If you use internet banking, printing out a three-month history will suffice. If your name isn’t on the printout, kindly provide an older statement that matches the account. Alternatively, an online “summary of accounts” displaying your name can be used to match the three-month history. Please note that certain investment statements are issued quarterly, so provide the most recent quarterly and up-to-date online statements.

If your down payment originates from property sale proceeds, the lender will require a copy of the sale contract, an addendum confirming the removal of subjects, or a copy of the “Order to Pay” received from the lawyer or notary, along with the latest mortgage statement.

For “gifted funds,” they must come solely from direct family members (e.g. father, mother, grandparent, children). The lender will require a gift letter, along with proof of the gifted amount deposited into the purchaser’s account. The lender may also request confirmation of the fund source. It’s important that the deposited amount matches the figure stated in the gift letter. Most lenders have their own gift letters, but we’ll gladly provide one. Remember, the gifted funds should be deposited into your bank account at least two weeks before the completion date.

Note: Mobile statements may lack essential information. Bank statements should be obtained from a desktop computer or your bank branch.