Personal Finance

Certified Funds for Home Purchase

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  • Oct 7th, 2014 11:13 am
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Deal Addict
Dec 27, 2013
3731 posts
1526 upvotes
Woodbridge

Certified Funds for Home Purchase

Hi there. My wife and I are starting our search for a home. We bank with PC, and I also have a savings account open with TD that I don't use. I know that if we were to put in an offer, we'd need to include a deposit which I'm guessing needs to be some sort of certified funds. I can order a bank draft through PC but it gets mailed to us. That's obviously problematic because the seller isn't going to wait and they usually need the deposit within 24 hours. Is my savings account at TD enough to be able to go into a branch and get a certified cheque right then and there? If not, what else might you recommend?
9 replies
Banned
Sep 10, 2014
694 posts
145 upvotes
I gave a regular personal cheque for my deposit. It wasn't a problem. Maybe depends on the seller or sellers realtor?
Now your lawyer that closes the deal, he'll more than likely want a certified cheque/bank draft.
Deal Addict
Dec 27, 2013
3731 posts
1526 upvotes
Woodbridge
Yeah we asked our realtor last night about that and he said in his experience most want either a bank draft or certified cheque. I just want to be prepared for the possibility that we find a seller who won't take a personal cheque.

Maybe a personal cheque combined with a banking statement? lol...
Deal Addict
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Jan 2, 2012
4596 posts
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Toronto
Standard practice for buying a home is that you indicate in your offer you will give a certified cheque of $X as deposit within so many days of the offer being accepted. In many major markets (like GTA) a personal cheque will not be accepted.

I also use PCF and in the last 2 homes i've purchased, there were no issues. Once the offer was accepted I called PCF to request the certified cheque, and they sent it to my nearest CIBC for pickup. If you order it in the morning they can often have it at CIBC by the afternoon (just call CIBC to push them)... or worst case the next day.
Deal Addict
Dec 27, 2013
3731 posts
1526 upvotes
Woodbridge
Thanks Rob! The only information I've been able to find online from PC is regarding money orders... 5-7 business days.
Deal Addict
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Jan 2, 2012
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Toronto
jvnanu wrote: https://www.txn.banking.pcfinancial.ca/ ... Popup.page

"Certified cheques
We cannot certify cheques; however, you may obtain money orders, bank drafts and wire transfers instead."

*confused*
It's just semantics. As long as it's one of those things, the seller's lawyer will accept it.

It's proably 5-7 days to mail it to you. If you request pickup at your nearest CIBC, it will be much quicker. Just call up PCF and ask.
Jr. Member
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Aug 26, 2014
131 posts
55 upvotes
Markham, ON
Put a rush order with PC, you can pick up the bank draft at Cibc the next day, it costs $27. I closed my pc checking account after that, i had been with them for 12 years. Now we are with Scotia Bank and we can't be happier.
Member
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Apr 5, 2006
466 posts
54 upvotes
Toronto
Make sure you have enough in your PC chequing bank account to cover the deposit. On the Agreement of Purchase and Sale there is a line "Buyer submits Upon Acceptance $XX,XXX...........Buyer is required to deliver the deposit to the Deposit Holder within 24 hours of the acceptance of this Agreement. Have your Realtor stroke out the 24 and change to 48 if you want to be safe. Call PCF immediately when you know the offer has been accepted and you will be able to pick up a bank draft at a CIBC branch of your choice either later that day or in the morning the very next day. When you call them make sure you get they will want to know the exact name of the "Deposit Holder" and they might also ask for the address. You will then need to meet with your Realtor to give him or her the bank draft.
Deal Addict
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Jan 2, 2012
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CCHunter wrote: Put a rush order with PC, you can pick up the bank draft at Cibc the next day, it costs $27.
Both times I did it (ordered by phone in the morning), I was able to pick up the draft on the same day from CIBC.

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