Down Payment -Checklist
Federal regulations require lenders to document your down payment under Anti-Money Laundering laws. (See Addendum on next page as an FYI.) As such, lenders need records from your financial institutions.
Use this checklist to help with down payment records:(and to avoid delays) ** statements for most recent, consecutive 90 days,
-do you have multiple bank/RSP accounts?-please provide 90 day record for each account.
-need to confirm funds for down payment do not come from a line of credit.
Review for Large Deposits **Under federal regulations, lenders will ask for details of any/all large deposits
(i.e. are any deposits larger than a payroll deposit?),full documentation required
-i.e.; -bonus pay stub, -bill of sale for sale of car –statement from lawyer for inheritance, etc.
Tips: **Do not transfer all/ any funds to one account until after you provide the 90 day record!
-paperless statements are very common, so online banking is okay,
-online banking has less information than a mailed statement so a void cheque may be needed,
-the void cheque is used to cross reference the account number on the online banking record,
-if you do not have cheques (or cheques not personalized) ask your bank teller for a P.A.D. form*,
-this P.A.D.* form must be stamped by the teller, (*Pre-Authorized Debit) **Not Accepted: ( reason why & tips) **records from mobile phones and tablets, (formatting of information is not as clear)
-blacked out entries on account records, (no documents can be altered)
-taking a photo of computer screen, (due to poor resolution)
(for an easy solution to get clear image resolution, use; ‘Screen Print’ then ‘paste’ into ‘Paint’ Program, which is on the ‘Start’ menu)
** Important -Please read carefully ***when your total deposits are close to the amount needed for down payment and legal costs, or when the last amount needed is only deposited after approval (deposits from Gift, Asset Sale, RSP, etc.), the lender will monitor this closely, and so will I. When all funds are received, I will ask you for one last, full 90 day record. This makes it easier for lenders to complete this (more thorough) review of your down payment.
Lenders are very reasonable. Federal regulations simply mean they need to be thorough.
We are also here to help you with this! Feel free to contact us if you have any questions, 754-7607