Down Payment Sources and the Records Buyers Should Keep

Inventory each source before moving money

List every amount that could go toward the purchase: savings account, chequing, a matured GIC, TFSA, FHSA, an RRSP withdrawal under an eligible program, proceeds from selling a vehicle, a gift. For each source, note the owner, the estimated amount, the date the money will be accessible and the withdrawal conditions. This quickly reveals amounts that look available but aren't yet, like a non-redeemable investment or a sale that hasn't closed. It also separates your own funds from borrowed money. A loan meant for the down payment creates an obligation and isn't treated as savings; whether it's accepted depends on the program and the lender. Don't assume a source is allowed because it was used in another transaction. Give the list to the financing professional and ask which documents they expect for each category before any large transfer.

Keep a readable chain of statements

Download official statements for the period requested and keep them in their original format. A screenshot showing only a balance often leaves out the holder, the partial account number and the history needed. When money moves from one account to another, keep both the sending and the receiving statements: the dates and amounts have to match up. Add confirmations of investment redemptions and receipts tied to any program you use. If an unusual deposit shows up, prepare the document that explains it before funding. The trail should show that the money is yours, that it's accessible for the transaction and that no undisclosed debt sits behind the deposit. Final requirements come from the lender and can change during the review.

Document a gift without creating ambiguity

A gift meant for the down payment should be presented as a gift. The donor may have to sign a letter stating their relationship to the buyer, the amount, the property or intended use, and that no repayment is required. The lender may also ask for proof of the transfer and, under its rules, information showing the donor had the funds. Avoid side agreements under which a so-called gift actually has to be repaid: that obligation changes your debt picture and can make the information you gave inaccurate. Schedule the transfer early enough to get the statements, but don't move it ahead of the lender's instructions if it requires a particular sequence. If several relatives contribute, keep 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, since expectations are stated before the purchase.

Coordinate FHSA, RRSP and other eligible withdrawals

Registered accounts each follow their own tax and administrative rules. Before withdrawing, check with official sources or a qualified professional the eligibility of the buyer and the home, the forms to use, the timing and the consequences of a non-qualifying withdrawal. Limits and procedures can change: confirm them at the time of the transaction rather than copying a figure from an old guide. A withdrawal can take several business days, and an investment held in the account sometimes has to be sold before the cash is available. Put these steps on the financing calendar and keep the institution's confirmations. If you combine several programs, make a table showing each one's contribution, the planned date and the destination account. The total has to stay consistent with the promise to purchase, the notary's instructions and the statements sent to the lender. That way no amount arrives too late or gets presented twice.

Protect closing cash and the post-purchase reserve

Being able to prove a down payment doesn't mean putting the whole balance into it. The lender may ask for proof that closing costs are also covered, and the household will need cash for the inspection, notary, adjustments, move, transfer duties and first owner expenses. Show sub-goals in your table: down payment, estimated costs, emergency reserve, immediate work. If the offer or the price changes, recalculate each pool rather than automatically taking the difference from the buffer. Also check that the deposit delivered with the promise to purchase is included in the total and backed by the right receipt. Before funding, avoid large credit purchases and transfers that make the statements harder to read, unless you've discussed them with the financing professional first. A stable, consistent file means fewer explanations at the last minute.

Checklist

• ✓List every account, investment, gift or proposed sale proceed
• ✓Confirm acceptable sources with the lender or mortgage broker
• ✓Download official statements before transferring funds
• ✓Keep both sides of every movement between accounts
• ✓Prepare gift letters in the format communicated for the file
• ✓Verify current registered-account rules and processing times
• ✓Document the deposit delivered with the promise to purchase
• ✓Separate the down payment from transaction costs and reserves
• ✓Disclose new borrowing or unusual deposits during underwriting