Real Estate

Source of deposit on a Pre-construction Condo

  • Last Updated:
  • Apr 2nd, 2019 8:29 pm
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes

Source of deposit on a Pre-construction Condo

I wanted to purchase a pre-construction condo in QC, so I did. I was asked for 10% +5% +5% instalments every 6 months. Completion is in 2020. I gave the 10% and 5% already but I did not keep much record of my daily transactions. On the pre approval I had planned to ask parents for money but when they time came I took from my LOC (20%) and 500$ from a friend (was stupid, I had 80% to take from LOC) to complete the 10%. Now when I went to the bank developing the project they said I need 90 days of bank statements for each instalment. The broker says the cheques are enough.. Who is right? How much of a problem is if they see I received 500$ the day of deadline of the mortgage and that was enough to complete it. Please don't tell me I shouldn't be a homeowner. I am already in this and aside from this issue all is going good.
9 replies
Jr. Member
May 7, 2015
157 posts
227 upvotes
Toronto, ON
mordeleted wrote:
Apr 1st, 2019 9:42 pm
I wanted to purchase a pre-construction condo in QC, so I did. I was asked for 10% +5% +5% instalments every 6 months. Completion is in 2020. I gave the 10% and 5% already but I did not keep much record of my daily transactions. On the pre approval I had planned to ask parents for money but when they time came I took from my LOC (20%) and 500$ from a friend (was stupid, I had 80% to take from LOC) to complete the 10%. Now when I went to the bank developing the project they said I need 90 days of bank statements for each instalment. The broker says the cheques are enough.. Who is right? How much of a problem is if they see I received 500$ the day of deadline of the mortgage and that was enough to complete it. Please don't tell me I shouldn't be a homeowner. I am already in this and aside from this issue all is going good.
$500 isn’t gonna be a problem. Get a letter saying it was a gift from a direct relative. That’s IF they ask you for it. The LOC take may be a bigger problem. But then again any agent worth his salt can get you a mortgage. Congrats on your house

Also you don’t need to go with the bank dealing with the project.
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes
moeymoeymoeymoe wrote:
Apr 1st, 2019 11:03 pm
$500 isn’t gonna be a problem. Get a letter saying it was a gift from a direct relative. That’s IF they ask you for it. The LOC take may be a bigger problem. But then again any agent worth his salt can get you a mortgage. Congrats on your house

Also you don’t need to go with the bank dealing with the project.
Hello, thank you for your reply. The 500 was an e-transfer from my friend, which by the way was paid back in 30 days. Also i have paid all my debts so 0 debt. I’ve been good with my budget i am just worried they will ask me bout those 500$ lol.

Would they ask for 90 days statement for each instalment or just 90 days before closing day? Thank you
Deal Fanatic
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Feb 2, 2014
6691 posts
1646 upvotes
Toronto
mordeleted wrote:
Apr 1st, 2019 9:42 pm
I wanted to purchase a pre-construction condo in QC, so I did. I was asked for 10% +5% +5% instalments every 6 months. Completion is in 2020. I gave the 10% and 5% already but I did not keep much record of my daily transactions. On the pre approval I had planned to ask parents for money but when they time came I took from my LOC (20%) and 500$ from a friend (was stupid, I had 80% to take from LOC) to complete the 10%. Now when I went to the bank developing the project they said I need 90 days of bank statements for each instalment. The broker says the cheques are enough.. Who is right? How much of a problem is if they see I received 500$ the day of deadline of the mortgage and that was enough to complete it. Please don't tell me I shouldn't be a homeowner. I am already in this and aside from this issue all is going good.
Copies of the cheques and proof the cheques cleared (ie statement of adjustments, letter from the builder...) are suffice.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
Member
Jul 25, 2008
385 posts
264 upvotes
ottawa
mordeleted wrote:
Apr 2nd, 2019 12:06 am
Hello, thank you for your reply. The 500 was an e-transfer from my friend, which by the way was paid back in 30 days. Also i have paid all my debts so 0 debt. I’ve been good with my budget i am just worried they will ask me bout those 500$ lol.

Would they ask for 90 days statement for each instalment or just 90 days before closing day? Thank you
when you say you have no debt, do you mean you have paid back the LOC?

If that's the case, just show them those records.
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes
Man I read your reply to another thread, you really know the subject. I deeply appreciate your time to reply. thank you so much
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes
yes!! I am debt free in fact if I stick to my budget, I can give up to 35% of DP instead of the 5% that got pre approved for. Thank you.
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes
CdnRealEstateGuy wrote:
Apr 2nd, 2019 12:59 pm
Copies of the cheques and proof the cheques cleared (ie statement of adjustments, letter from the builder...) are suffice.
By the way. What do you mean by statements of adjustments? Is this the document that states in which dates and how much I have to give the developer? Thank you.
Deal Fanatic
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Feb 2, 2014
6691 posts
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Toronto
mordeleted wrote:
Apr 2nd, 2019 7:38 pm
By the way. What do you mean by statements of adjustments? Is this the document that states in which dates and how much I have to give the developer? Thank you.
It’s a documents created by the builder’s lawyer that list the financials. It will list the purchase price, deposits and net amount owing.
Kevin Somnauth, CFA
Owner/Principal Broker - First Toronto Mortgage - Mortgage Architects (#13176)
Real Estate Salesperson - Century 21 Innovative
President's Club Award Winner At The Mortgage Architects
[OP]
Newbie
Mar 31, 2019
9 posts
2 upvotes
CdnRealEstateGuy wrote:
Apr 2nd, 2019 8:19 pm
It’s a documents created by the builder’s lawyer that list the financials. It will list the purchase price, deposits and net amount owing.
Thank you again buddy. You are so helpful!

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