Acceptable Sources of Down Payment for a home Canada, 2024

This seems to be the topic of this week  … what can I use for down payment on my home?

All banks DO ACCEPT these approved methods to gather down payment for a home.

Acceptable Sources of Down Payment:

Investments	Legal Settlements
RRSP	Borrowed funds from secured facilities
RESP	Income tax refunds
Sale of a property	Cash Buyout from separation or divorce
Refinance of a property	Employer relocation allowance
Land – sale of – including from divorce	Business cash flow
Inheritance	Business proceeds from sale
Grant “Insured Only”	Winnings
Personal savings “Tax-Free Savings Account (TFSA) or Tax-Free First Home Savings Account (FHSA)” Gifted funds “Only from an immediate family member (siblings, child, parents, grandparent), the spouse and the ex-spouse” Gifted equity “Only from an immediate family member (siblings, child, parents, grandparent), the spouse and the ex-spouse” Funds wired from abroad except from sanctioned countries First Time Home Buyer Incentives (FTHBI) program

Ineligible Sources of Down Payment

Unsecured loans, lines of credit and credit cards	Lease to own / Rent to own – because this happens to be the #1 area of fraud in ALL if Canada for ALL reasons.
Sweat equity	Cash back
Purchase incentive	Locked-in RRSP
Cryptocurrency – even Dogecoin – sorry Elon. 🙁	Vendor concession- or Vendor Take Back = VTB  (treated as a decrease in the purchase price)

The new Tax-Free First Home Savings Account (FHSA) and the

FTHBI – First Time Home Buyer Incentive were the government matches your down payment up to 5% ARE both great ideas!

Mortgage Mark Herman, top Calgary Alberta Mortgage Broker since 2004!