Hey Reader,

When you’re buying a home, saving the down payment feels like the hardest part. But many buyers are surprised to learn that lenders must also verify where that money came from and it’s a required step, not a personal judgment.

Why do lenders verify the source?
​Lenders need to confirm that your down payment is:

• Legitimate and traceable
• Not borrowed (unless allowed under specific programs)
• Compliant with anti–money laundering rules

Common acceptable sources include:

• Personal savings
• Sale of an asset (with documentation)
• Gifted funds from immediate family (with a gift letter)
• RRSP withdrawals (including the Home Buyers’ Plan)

What can cause delays?

• Large unexplained deposits
• Cash deposits without a paper trail
• Moving money between accounts too late in the process

Keep your down payment funds in one account for at least 90 days before buying, and always talk to your mortgage professional before moving money.

Having the money isn’t enough, being able to explain and document it is just as important.

If you're planning a purchase a home or unsure if your down payment is acceptable, reply to this email or schedule a call and let’s review it early and avoid last-minute surprises.

Have a great day,

Abdoul Traore | Mortgage Agent Level 1 | 416.315.5910 | abdoul@traoremortgage.com | www.traoremortgage.com

Mission35 Mortgages Lic. 12844