The minimum down payment gets the attention because it sets the first threshold for buying. But the lender looks at more than the percentage. It wants to see where the money came from, how long it’s been there, and whether you can cover closing costs.
The minimum does not cover everything
Keep cash for notary fees, tax adjustments, inspection, insurance, moving, and sometimes the welcome tax. A down payment that uses every dollar leaves the file fragile.
With a low down payment, mortgage insurance can be added to the financing. Calculate the payment with that in mind, not only the purchase price.
Prove the source of funds
Personal savings, family gift, RRSP withdrawal, TFSA, sale of an asset, a refund: the lender wants a clear trail. Recent transfers often mean extra statements.
File checkpoints
| Area | Question | Useful proof |
|---|---|---|
| Budget | Does the payment remain affordable after closing? | Payment, taxes and insurance. |
| Timeline | Is the deadline realistic? | Offer, condition and notary dates. |
| Risk | What could slow approval? | Credit, income and property notes. |
A clear down payment beats a bigger one nobody can explain.
Keep a reserve after buying
A reserve reassures the lender and protects you. A property always costs something in the first weeks: a lock, paint, a water heater, an appliance, or just a surprise.
Where the file usually needs attention
These bars show which items deserve attention first; they are not a credit score or approval promise.
Clean documents reduce back-and-forth.
A realistic condition protects the offer.
Policy fit often matters as much as price.
- ✓Minimum percentage
- ✓Closing costs
- ✓Account statements
- ✓Gift letter
- ✓RRSP withdrawal
- ✓Reserve after purchase