Chapter 9
Downpayment Verification Rules: Large Deposits & International Funds
Anti-money-laundering regulations require lenders to meticulously audit the source of your downpayment. You must provide a clear, unbroken 3-month history of account statements for any asset account housing those funds.
Source-of-Funds Rules You Must Follow
- Large Deposits: If any anomalous or irregular large sums were deposited into your accounts over the last 90 days, you must provide a paper trail proving their source (e.g., investment sales records, asset sales).
- International Assets: If your downpayment is arriving from outside Canada, it must sit in an established Canadian banking institution at least 30 days prior to closing, backed by 3 months of international statement history.
Pro-Tip: Keep your downpayment in one or two accounts for the full 90 days before closing. Frequent transfers between accounts multiply the paperwork your underwriter will request.
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