PROVING DOWN PAYMENT SOURCE IS VERY IMPORTANT DUE TO ANTI-LAUNDERING MONEY LAWS.
KNOW THE RIGHT WAY TO HANDLE AND PROVE YOUR DOWN PAYMENT!
Did you know that by Law we must Prove all Down Payment Sources to be Compliant with FINTRAC ( Financial Transactions and Reports Analysis Centre of Canada.)
Typically we must produce 90 days Bank account History for Monies used as a deposit, and Source of Funds.
We can do this with Bank Statements, copies of Deposit Drafts, and Source of funds in Cases of Gifted Down Payment, Signed Gift Letters with Proof of Funds.
Monies coming from Outside the Country are even more Heavily Scrutinized.This is due to the fact that Countries are banned as Source Countries for funds to be coming into Canada due to Restrictions and Sanctions enacted by the Government of Canada. FINTRAC is also Looking for Funds coming from Crime Proceeds and other non-acceptable sources.
Here is some tips to help Down Payment Proof be facilitated Easier.
1. Try and get all Funds to be used into One Account with a 90 Day History Prior to Purchasing, or have Adequate Documentation showing the 90 Day History for any funds being Transferred in.
2. If Gifted, a Proper Gift Letter Signed by all Parties and Proof of Source of Funds and Proof of Deposit of Funds will be Required.
3. For Out of Country funds, proper Origination Documents, Deposit in Canadian Account, and 30-90 Days History of those funds will be Required.
4. For RRSP Funds or Insvestment Funds typically 90 Day Statements, and then Proof of the Funds being deposited in your Account and Available to Use.
5. All Cash must be Deposited into an Account and held a minimum of 90 Days
6. If coming from a Sale of Property we must supply Unconditional Proof of Sale, Statement of Adjustments from Lawyer showing Funds available after Closing, and often proof of the funds being Deposited.
7. Borrowed Down Funds ( Flexdown) must have proper Documentation showing Account coming from and Funds Available.
8. Try and Avoid moving the Money between Accounts within the 90 Days as this just increases the amount of Documentation needed.
Being Prepared to Provide the Proper Documentation will enable your Approval and Closing on a Property in Canada to be facilitated much easier.
Get our Advice on how to Prepare in your Circumstances.
CONTACT US NOW TO FIND OUT HOW!!