Mortgage down payment rules in Vancouver
TIMING OF CONFIRMATION OF DOWN PAYMENT
Almost all financial institutes (Banks, Credit unions and private lenders) like to have proof of the down payment and history of the origin in your account for 30-90 days before funding your mortgage.
The buyer must pay the down payment from their own funds (or other eligible sources) before securing a mortgage. At the approval stage the customer must indicate how much down payment they will be providing and where those funds will be coming from. If the funds are coming from a number of sources (i.e. a savings account and two investment accounts) the customer should be able to provide a breakdown of where those funds are located. These funds must be confirmed in accordance with the Down Payment Policy by the closing date.
MINIMUM AMOUNT OF DOWN PAYMENT
Lending institutions will usually require you to make a down-payment of at least 5% to 10% of the purchase price of the home. Lending institution policies may vary from time to time. However, as a general rule, you should make your cash down-payment as large as possible. Your deposit for the real estate transaction may form part of your down-payment. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion.
THE BORROWED MONEY FOR DOWN PAYMENT
Almost everyone who purchases a home borrows some of the money needed to pay for it. The easiest way to determine how much money you will be able to borrow as a mortgage loan is to consult with mortgage broker. These lenders will apply standard tests, based on your family’s current income and debts, in order to decide the amount of money they will lend to you.
At love the mortgage in Vancouver, we make sure you are aligned with rules before you start the search.