When purchasing a home with a CMHC-insured mortgage, lenders must verify the source of your down payment to ensure the funds are legitimate, available, and comply with mortgage insurer requirements.

What Documentation Is Typically Required?

Most lenders will ask for:

• 90 days of bank statements showing the accumulation of the down payment funds
• Statements from savings accounts, chequing accounts, TFSAs, RRSPs, GICs, or investment accounts
• Documentation showing any transfers between accounts
• Proof that the funds are available before closing

Common Acceptable Sources of Down Payment

✅ Personal savings

✅ RRSP withdrawals through the Home Buyers’ Plan (HBP)

✅ TFSA savings

✅ Non-repayable gifts from immediate family members

✅ Proceeds from the sale of another property

✅ Investments or GICs that have been redeemed

Gifted Down Payments

If all or part of the down payment is a gift, lenders typically require:

• A signed gift letter
• Confirmation that the gift is non-repayable
• Proof of deposit into the buyer’s account
• Evidence of the transfer from the donor’s account

Large Deposits May Require Additional Explanation

If there are large, unusual deposits in your account within the previous 90 days, your lender may request:

• A copy of a cheque
• Proof of an investment redemption
• Documentation from a property sale
• Evidence of where the funds originated

Simply depositing cash without documentation can create challenges when obtaining final mortgage approval.

Key Tip for Buyers