Where is your client’s down payment coming from?
Banks must be diligent in following anti-money laundering rules and regulations to verify down payment funds are coming from a legitimate source.
Down payments with Bridgewater Bank can be paid from your client’s own sources or through other means with a minimum of 10% coming from your client’s own sources.
Client’s own resources:
- Borrower’s own savings
- Income tax refund
- Withdrawal from RRSPs under Home Buyers’ Plan (HBP)
- Equity in property or from sale in another property
- Land equity
- Gift from immediate family (indicated with a gift letter; we may also require proof of the ability to gift the funds through bank statements from the source providing the funds)
Remaining down payment sources:
- Any of the options in the above list
- Unsecured borrowed funds (must be debt serviced at 3%)
- Funds borrowed against proven assets
Underwriting tip: Make your client’s life easier by having funds showing in their account 90 days prior. This will save on added paperwork and frustration.
More information and resources:
Income verification
Net worth assets
Gateway product standards
Lending areas
Home Buyers’ Plan
