Personal Finance

Downpayment for house in BC - 3 month wait period?

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  • Jun 18th, 2013 7:20 am
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Newbie
Feb 1, 2012
71 posts
5 upvotes
DELTA

Downpayment for house in BC - 3 month wait period?

My family is looking to buy a house in the lower mainland area near Vancouver BC. I am lending them about 6k towards downpayment and really want to get out of the current rental suite we have.

Is the 3 month waiting period for the downpayment being in your bank necessary or is there a way around it? The noise levels are insane here and cannot get any sleep.

Also, what is the fastest way to transfer that amount? I'm with PC.

Thanks.
8 replies
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
L0gikb0mb wrote: My family is looking to buy a house in the lower mainland area near Vancouver BC. I am lending them about 6k towards downpayment and really want to get out of the current rental suite we have.

Is the 3 month waiting period for the downpayment being in your bank necessary or is there a way around it? The noise levels are insane here and cannot get any sleep.


Also, what is the fastest way to transfer that amount? I'm with PC.

Thanks.
You can gift them the downpayment. Their lender will require them to sign a letter with their lawyer stating that it is a gift and will not be repaid. It would have to be the whole downpayment
Doug Boswell
i
Newbie
Aug 1, 2012
20 posts
14 upvotes
Montreal
Not sure what the rules are in BC, but in Quebec we have the same 3 month rule for down payment being in your account. The only way around it in my expereince was to have a gift letter saying you received 6K from someone else as a gift with no debt to that person. We ended up getting a gift letter for the entire amount of down payment just to avoid proving we had other funds in our bank accounts.
Sr. Member
May 3, 2013
760 posts
475 upvotes
Toronto
dougboswell wrote: You can gift them the downpayment. Their lender will require them to sign a letter with their lawyer stating that it is a gift and will not be repaid. It would have to be the whole downpayment
What do you mean the "whole downpayment"? Can't the downpayment be $10K and only $6K is coming from OP? I thought lenders needed/preferred at least 5% to come from the actual owners.
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
Also trying talking to a BC mortgage agent. In Ont there is a lender that still does flex downpayments. They allow you to use borrowed funds such as from a credit card or line of credit. The money payments on these will be part of your debt ratios. Perhaps a BC agent will know of a lender out there.
Doug Boswell
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Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
realtorhome wrote: What do you mean the "whole downpayment"? Can't the downpayment be $10K and only $6K is coming from OP? I thought lenders needed/preferred at least 5% to come from the actual owners.
The ones I have dealt with like this have always been the entire downpayment.
Doug Boswell
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Deal Addict
Jun 20, 2011
2095 posts
1083 upvotes
VANCOUVER
For BC it's not the entire amount that has to be the gift. If the downpayment was say $20,000 and your portion was $5,000 then you just have to sign a gift letter saying it won't be repaid for $5,000. It has to be a principle residence, you can't gift for an investment property.

As for the 3 month rule, yes the does come into effect if you're not going the gift route. They need to see where the money is coming from. So if you can give them a paper trail then all should be fine.

Unless you are totally talking about something else like taking out your RRSP for your first home buyers option. That has a 3 month wait rule I believe after you deposit into your RRSP. So you can't deposit today into an RRSP and then take it out the next day for 1st home buyers. Someone correct me if I'm wrong.
Sr. Member
May 3, 2013
760 posts
475 upvotes
Toronto
DDHLeigh wrote: For BC it's not the entire amount that has to be the gift. If the downpayment was say $20,000 and your portion was $5,000 then you just have to sign a gift letter saying it won't be repaid for $5,000. It has to be a principle residence, you can't gift for an investment property.

As for the 3 month rule, yes the does come into effect if you're not going the gift route. They need to see where the money is coming from. So if you can give them a paper trail then all should be fine.

Unless you are totally talking about something else like taking out your RRSP for your first home buyers option. That has a 3 month wait rule I believe after you deposit into your RRSP. So you can't deposit today into an RRSP and then take it out the next day for 1st home buyers. Someone correct me if I'm wrong.
You are correct! 90 days for Home Buyers Plan.
Banned
Jan 3, 2013
581 posts
25 upvotes
PORT MORIEN
L0gikb0mb wrote: My family is looking to buy a house in the lower mainland area near Vancouver BC. I am lending them about 6k towards downpayment and really want to get out of the current rental suite we have.

Is the 3 month waiting period for the downpayment being in your bank necessary or is there a way around it? The noise levels are insane here and cannot get any sleep.

Also, what is the fastest way to transfer that amount? I'm with PC.

Thanks.
how much is your house and how much is your down payment?

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