Can I move my down payment?

TatiLovesFinance wrote: ↑ Hello all,

My down payment has been sitting in a bank account for a number of months now because I was actively looking for a home and apparently the funds need to be in the account for a minimum of 3 months.

Since everything has been halted for who knows how long, if I were to move the funds in a different account where it can grow, and let’s say I found a house next month, would the bank require the funds to be in the new account for a minimum of 3 months or would it not matter as long as I can provide a statement that it was in ANOTHER account for at least 3 months?

I know this is kind of a silly question, but I don’t want to move that money until I’m sure.

Thank you,

Tatiana

Lavaris1 wrote: ↑ Money can be in any your accounts
TFSA or any account but must be yours.

Invest in stock market thru TFSA and get 100% returns in an year and double your down payment ... I am just joking

TatiLovesFinance wrote: ↑ Hi Lavaris,

I am an avid trader and know that my down payment can be held in an investment account. My question is, if I were to move it to my investment account now, if I found a house next month, would the bank tell me that the funds need to be in the investment account for a minimum of 3 months? Or can I just provide proof that the funds were held in a bank account a minimum of 3 months prior to being transferred into the investment account?

Lavaris1 wrote: ↑ Proof is enough
That’s what my point is as long as it’s in any of your account
And can show proof of transferring money
It’s enough

TatiLovesFinance wrote: ↑ Hi Lavaris,

I am an avid trader and know that my down payment can be held in an investment account. My question is, if I were to move it to my investment account now, if I found a house next month, would the bank tell me that the funds need to be in the investment account for a minimum of 3 months? Or can I just provide proof that the funds were held in a bank account a minimum of 3 months prior to being transferred into the investment account?

KanataKG wrote: ↑ I think you're confused.

The money could have been in your investment account all along.. you just needed to provide 3 months statements for your investment account.

There's no rule that says a downpayment needs to be sitting in your chequing account for any length of time

KanataKG wrote: ↑ I think you're confused.

The money could have been in your investment account all along.. you just needed to provide 3 months statements for your investment account.

There's no rule that says a downpayment needs to be sitting in your chequing account for any length of time. The whole point is to prove that the money is yours and not borrowed or gifted.

If you move the money within 3 months of closing, you would just provide the statements for both accounts

SaskCanesFan wrote: ↑ I thought a down payment could be gifted by a family member?

bomber17 wrote: ↑ It can, just need a gift letter and funds in the accounts 15 days before closing. He is just saying that for funds not declared as such as there are people that try to circumvent down payment rules.

JacobV91325 wrote: ↑ Does the downpayment gift letter override the requirement of 3 months holding in the bank account?

bomber17 wrote: ↑ It can, just need a gift letter and funds in the accounts 15 days before closing. He is just saying that for funds not declared as such as there are people that try to circumvent down payment rules.

SaskCanesFan wrote: ↑ I thought a down payment could be gifted by a family member?

SaskCanesFan wrote: ↑ Ah, thanks I didn't know that. Are there any tax implications on money gifted from immediate family for downpayment? Looking at buying a home for the first time, but don't have 20% in my own savings to put down, so about 10% would be from my savings and 10% from father.

bomber17 wrote: ↑ Yes. Don't need to show 3 month's statement if gift letter is provided. You may have to show the money is in your account but other than that, nope. Use it all the time for overseas money coming in as a lot of it is coming from family anyways.

JacobV91325 wrote: ↑ Hey, I called up RBC today with whom I have a pre-approval with. They stated I should still supply 3 months bank statements and if it’s a gift letter, it ought to be 3 months bank statements from the donor. Now I’m in a quandary.

Unsure how these guys operate.

bomber17 wrote: ↑ That's stupid. He's just giving you a hard time. I know mortgage specialists from RBC that can just take gift letters. BMO for sure can just take gift letters.