Proof of Down Payment

FINTRAC defines source of funds around how the money was acquired, not merely the account it came from at the moment of the transaction. That distinction is useful in mortgage underwriting too.

If $80,000 appears in chequing yesterday, today’s balance proves possession but not origin. The lender may need to see whether it came from accumulated savings, a gift, sale of investments, property sale, FHSA/HBP withdrawal or borrowing.

Build the evidence in chronological order: origin → ownership/custody → conversion if needed → transfer → purchase deposit → remaining lawyer funds. Every major movement should have a document that explains the next balance.

This approach is easier for both borrower and underwriter than sending twenty statements with no explanation. A one-page source schedule can tell the lender what each document is proving.

There is no single public “90-day rule” that applies to every Canadian mortgage. Lenders and insurers can request different history depending on the source, product and risk. HopeWell broker-channel experience is that 30-, 60- or 90-day evidence requirements can appear in different situations, particularly with gifted or foreign funds.

The practical solution is to preserve history rather than manufacture it later. Download monthly statements before closing and avoid deleting access to old investment or foreign accounts after transferring the funds.

There is no universal dollar amount. Materiality depends on the overall down payment and account pattern. A $15,000 transfer can be routine in one file and the entire unexplained equity source in another.

For each material deposit, ask: who sent it, why, what document proves the underlying event, and is there any repayment obligation? If the answer is “transfer from my other account,” continue one step further until the original source is clear.

The lender can require a gift letter and evidence of the transfer. Depending on policy and circumstances, it may also ask for evidence showing the donor had the funds.

A foreign gift can add wire and currency evidence. Use Gifted Down Payments for the donor/timing analysis rather than treating the gift letter as the entire proof package.

For securities, keep the investment statement, redemption/trade confirmation and bank receipt. For a property sale, keep the sale agreement/deed, payout/closing statement and receipt of net proceeds. For a physical asset, preserve ownership/purchase and sale evidence where possible.

The Brampton bullion case demonstrates this method: purchase invoices → sale invoices → wire evidence → bank statement. The lender could understand the entire conversion from savings asset to closing cash.

Foreign-source funds may need statements, translations where appropriate, sale deeds or employment/savings evidence, international transfer records and the receiving Canadian statement. The lender may also have requirements about how long the funds must be in Canada before closing.

HopeWell’s Hamilton Dubai-sale case used the foreign sale deed, bank draft and bank statement showing receipt. The underwriting logic was not “foreign is bad”; it was the source has to be understandable.

If the application says “own savings” but statements show a recent family transfer, that is not a wording detail—it is a different source. If the gift letter says $50,000 but $75,000 arrives, the lender may ask about the extra amount.

Use Mortgage File Consistency & Verification. Correct the application and explain discrepancies rather than hoping the underwriter will not notice them.

Create a simple schedule showing each source, amount, evidence and destination. Label documents chronologically. If several transfers are involved, explain the flow in one or two sentences rather than making the underwriter reverse-engineer it.

The goal is not more paperwork. The goal is less uncertainty per dollar of down payment.

There is no single “down payment document.” The evidence should match the economic event that created the money. A gift needs gift/transfer evidence; sale proceeds need sale evidence; FHSA/HBP needs registered-plan withdrawal evidence; investments need redemption records.

The best proof package is source-specific rather than statement-heavy.

Different participants have different legal and underwriting responsibilities. A mortgage lender wants to know the borrower truly has acceptable equity; the mortgage brokerage has compliance obligations; the lawyer may have separate client-identification and trust-account duties.

That is why providing proof once does not guarantee nobody else will ask. The efficient approach is to build one coherent source package that can answer the same factual question consistently.

A foreign account balance can change in Canadian-dollar value before closing. The lender may also require funds to be converted and transferred through acceptable channels before final approval.

Build a buffer for exchange-rate movement and transfer fees. Do not assume the CAD-equivalent amount on preapproval day will equal the amount received by the lawyer weeks later.

Avoid unexplained cash deposits, unnecessary transfers through friends or business accounts, mixing borrowed funds with “own savings” without disclosure, destroying old account access, or moving money after the lender has already verified a different source without telling the broker.

None of those actions necessarily means the source is illegitimate. They simply increase the number of unanswered questions at the worst possible time.

The final test is numerical. Add the proven sources, subtract any deposit already paid, add the remaining closing cash requirement, and make sure the borrower can transfer the amount the lawyer requests without introducing a new unexplained source.

HopeWell’s final source schedule should reconcile to the purchase price, mortgage advance and statement of adjustments. If it does not, solve the difference before funding day.