Where the money came from counts as much as how much there is. A lender has to trace the funds over about three months, and one big unexplained deposit stalls a file more reliably than a modest down payment. A gift has to be a real gift, with a letter saying it isn’t repayable.
Documents before comparison
Three months of statements for every account the money leaves, plus a paper trail for any unusual deposit. For a gift, the donor’s letter. For funds from abroad, proof of the transfer and of their origin. For the HBP or FHSA, the plan statements.
Down payment source
Where the money comes from changes the proof you need. Savings, a family gift, an RRSP withdrawal and an FHSA are each documented differently, and funds that have sat in a Canadian account for 90 days raise the fewest questions on a purchase in Sherbrooke.
Funds history in Sherbrooke
Bring the statements the lender asks for before you make an offer, and have an explanation ready for every large transfer or deposit in Sherbrooke.
Minimum amount and insurance
Under 20% down, mortgage default insurance is mandatory and caps the amortization at 25 years. Reaching 20% on a Sherbrooke purchase removes both the premium and the cap. That’s often worth waiting a few months for.
Costs kept outside the down payment
Notary fees, transfer duty and the inspection come out of your own cash, not the mortgage. Many lenders also want a reserve left after closing, so emptying every account to buy in Sherbrooke can weaken the file instead of helping it.
To prepare
What to gather.
Source of funds
Required holding period
Gift or withdrawal records
Purchase price
Mortgage insurance
Closing funds
Frequently asked
Can the file be reviewed remotely?+
Yes. Phone, email or video call, with documents sent online. We can meet in person if you’d rather, but most files get done without anyone driving anywhere.
Can a family gift be used as a down payment?+
Yes, with a letter from the donor confirming the money isn’t repayable. The gift itself blocks nothing. A large deposit you can’t trace over three months does.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
