Region served
Some lenders accept a borrowed down payment for a purchase in Grand Montréal, but the loan payment goes into your ratios. What that changes.
Where the money came from counts as much as how much there is. The lender has to trace the funds over about three months, and one large unexplained deposit stalls a file more surely than a small down payment does. A gift has to be a real gift, with a letter saying it isn’t repayable.
Three months of statements for every account the money leaves, and a paper trail for any unusual deposit. For a gift, the donor’s letter. For funds from abroad, proof of the transfer and of where it came from. For the HBP or FHSA, the plan statements.
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 Grand Montréal purchase.
Gather the statements you will be asked for before you make an offer, and be ready to explain every large transfer or deposit. Money with no source holds a Grand Montréal file up longer than a small down payment does.
Under 20% down, mortgage default insurance is mandatory and the amortization is capped at 25 years. Reaching 20% on a Grand Montréal purchase gets rid of both the premium and the cap. Waiting a few months for it is often worth it.
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 for a Grand Montréal purchase can weaken the file instead of helping it.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
Yes, with a letter from the donor confirming the money does not have to be repaid. The gift itself blocks nothing. A large deposit you cannot trace over three months does.
Pick the situation closest to yours.
Contact
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.