Real Estate

Buying property with cash

  • Last Updated:
  • Aug 14th, 2019 8:47 am
[OP]
Newbie
Apr 1, 2019
23 posts
26 upvotes

Buying property with cash

Hi,

After 12 years of saving, I think I am in a financial position to buy a condo with 100% cash. The money is in my bank accounts and I wonder what is the standard procedure to buy with 100% cash? Do I need to prove the source of my money? It will be difficult to obtain transactions and deposits in the last 12 years.

Last thing is it is a wise idea to offer without financing condition? I am planning to do that to increase my chance but not sure if the bank/lawyer/seller will insist on me proving the source of my income even though the money is already in my bank accounts.

Thanks
6 replies
Sr. Member
User avatar
Apr 26, 2010
685 posts
68 upvotes
Richmond Hill
Banks are required to keep statements up to seven years and i'm sure if they really want to they can probably go back to 12 if need be.
Deal Addict
User avatar
Dec 16, 2015
1519 posts
1028 upvotes
Canada
Hope thats atleast in index etf
Newbie
User avatar
May 21, 2019
50 posts
11 upvotes
As a buyer... yes making a purchase offer without financing condition increases your chance of getting the property... Assuming your offer price is actually decent.

As for standard procedure to buy with cash.. its the same but easier as you dont have to deal with the bank..... just show up.. sign the documents.. and when the lawyer asks for the money.. better be ready with it and actually pay for it...

ucu5009 wrote:
Aug 12th, 2019 9:57 pm

Thanks
Deal Addict
Mar 27, 2004
3200 posts
597 upvotes
Toronto
ucu5009 wrote:
Aug 12th, 2019 9:57 pm
Hi,

After 12 years of saving, I think I am in a financial position to buy a condo with 100% cash. The money is in my bank accounts and I wonder what is the standard procedure to buy with 100% cash? Do I need to prove the source of my money? It will be difficult to obtain transactions and deposits in the last 12 years.

Last thing is it is a wise idea to offer without financing condition? I am planning to do that to increase my chance but not sure if the bank/lawyer/seller will insist on me proving the source of my income even though the money is already in my bank accounts.

Thanks
you're good to go.
Cash rebate Realtor

Homelife Bayview

President Award 2018
Deal Addict
Jul 4, 2004
4714 posts
831 upvotes
Ottawa
As mentioned, you can certainly buy without a mortgage but be prepared to show where the funds are from. I don't know the details but realtors have to abide by FINTRAC rules and I suspect lawyers must as well. It's not that uncommon but will likely be under more scrutiny for money laundering, etc.

Depending on the real estate market where you are buying, having no financing condition could be appealing to a seller (i.e. if they have multiple offers, they might choose yours over another one because there's no financing condition) but for the most part, financing conditions are pretty much standard and don't typically scare off sellers.
Jr. Member
Feb 19, 2019
193 posts
148 upvotes
Stouffville ON
ucu5009 wrote:
Aug 12th, 2019 9:57 pm
Hi,

After 12 years of saving, I think I am in a financial position to buy a condo with 100% cash. The money is in my bank accounts and I wonder what is the standard procedure to buy with 100% cash? Do I need to prove the source of my money? It will be difficult to obtain transactions and deposits in the last 12 years.

Last thing is it is a wise idea to offer without financing condition? I am planning to do that to increase my chance but not sure if the bank/lawyer/seller will insist on me proving the source of my income even though the money is already in my bank accounts.

Thanks
Congratulations.
Are you buying in hot market such as Toronto DT condo? In such case offer without financing will be better than competing offers with financing, these days financing is not guaranteed and the seller may opt to take your offer even if you are offering a bit less money ($5K for example).

The link below outlines the suspicious transactions, you don’t really need to prove to the lawyer or real estate agent where you got the money, but if they have any suspicion regarding the source of funds, they will report it to Fintrac. For example if you are a person with a solid career and earnings, there probably won’t be any reason, if on the other hand things don’t add up, or if in the process of looking for a house you display characteristics which would typically raise red flags, there is a requirement to report the transaction. The fact the transaction is reported will not affect the existence (or non existence) of financing clause, real estate agent or the lawyer has 30 days to file the report, and who knows how long it will take for Fintrac to investigate, and then find your funds are from illegitimate source, all this will take much longer than a typical 5 or 10 business day financing clause.
https://www.fintrac-canafe.gc.ca/guidan ... e3/str-eng
Full Service / Rebate Realtor.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)