Down Payment Sources and the Records Buyers Should Keep

Inventory each source before moving money

List every amount that might support the purchase: savings, chequing cash, a matured GIC, TFSA holdings, FHSA funds, an RRSP withdrawal under an eligible program, proceeds from selling a vehicle or a gift. Record the owner, estimated amount, expected availability date and withdrawal conditions for each source. This exposes money that looks available but is not yet liquid, such as a non-redeemable investment or an unfinished sale. It also distinguishes personal funds from borrowing. A loan used toward a down payment creates an obligation and is not the same as savings; whether it is accepted depends on the program and lender. Do not assume a source is permitted because another buyer used it. Share the inventory with the lender or broker and request the evidence expected for each category before making a large transfer. That review can also identify funds that should remain outside the transaction for fees or emergencies.

Keep a readable chain of statements

Download official statements for the period requested by the lender or insurer and retain the original files. A screenshot showing only a balance often omits the account holder, partial account number and history needed to follow the funds. When money moves between accounts, keep both the sending and receiving statements so the dates and amounts connect. Add investment-redemption confirmations and receipts associated with any homebuyer program. If an unusual deposit appears, prepare the document that explains it rather than waiting for a question immediately before funding. The trail does not need to be elaborate. It needs to show that the buyers control the money, that it will be accessible for the transaction and that an undisclosed debt is not behind the deposit. Final requirements come from the lender and may be updated while underwriting proceeds, so respond to the current document list rather than an older checklist found online.

Document a gift without creating ambiguity

A gift intended for the down payment should be described as a gift. The donor may need to sign a letter stating the relationship to the buyer, amount, intended purchase or use and absence of a repayment requirement. The lender may also ask for evidence of the transfer and, under its rules, information showing that the donor had the funds available. Avoid side agreements under which a stated gift must actually be repaid. That obligation changes the debt picture and can make the application information inaccurate. Schedule the transfer early enough to produce statements, but do not move it before checking whether the lender requires a particular sequence. When several relatives contribute, maintain a separate letter and trail for each. The notary and lender should be able to understand the source without interpreting vague transfer labels. Clear documentation also protects family relationships by setting expectations before the purchase becomes unconditional.

Coordinate FHSA, RRSP and other eligible withdrawals

Registered accounts follow different tax and administrative rules. Before withdrawing, confirm the buyer and home's eligibility, required forms, timing and consequences of a non-qualifying withdrawal with current official guidance or a qualified professional. Limits and procedures can change, so verify them for the transaction date instead of copying a figure from an older article. A withdrawal can take several business days, and an investment held inside the account may have to be sold before cash becomes available. Put those steps on the financing calendar and retain every confirmation issued by the institution. If programs are combined, create a table showing each contribution, planned date and destination account. The total must remain consistent with the promise to purchase, notarial instructions and statements delivered to the lender. This coordination prevents money from arriving too late or being presented twice in the sources-and-uses calculation.

Protect closing cash and the post-purchase reserve

Proving a down payment does not mean committing the entire account balance to it. The lender may require evidence that closing costs are also available, and the household needs liquidity for the inspection, notary, adjustments, move, municipal transfer duties and first owner expenses. Show separate targets in the funding table: down payment, estimated transaction costs, emergency reserve and immediate work. When the offer price changes, recalculate every pool rather than taking the difference automatically from the reserve. Confirm that any deposit delivered with the promise to purchase is reflected in the total and supported by the appropriate receipt. Before funding, avoid major credit purchases or transfers that make the statements harder to read without first discussing them with the financing professional. A stable, consistent file reduces last-minute explanations and lets the buyer evaluate whether the purchase still leaves enough cash for ordinary ownership risks.

Sources

• Agence de la consommation en matière financière du Canada — Combien faut-il pour une mise de fonds
• Agence de la consommation en matière financière du Canada — Préapprobation hypothécaire
• Société canadienne d'hypothèques et de logement — L'achat d'une maison étape par étape