Down Payment: Accepted Sources and What Lenders Verify
By Hami Tahm · Last reviewed July 2026
What down payment sources do Canadian lenders accept?
Canadian lenders accept a down payment from sources you can document — personal savings, investments, RRSP withdrawals under the Home Buyers' Plan, a gifted amount from immediate family, or proceeds from selling an asset. Whatever the source, you must prove where the money came from: lenders typically ask for about three months of account statements, plus a signed gift letter for any gifted funds.
Sources lenders accept
The standard, widely accepted sources are: personal savings and investments (chequing, savings, TFSA, non-registered accounts), RRSP funds withdrawn under the federal Home Buyers' Plan (up to $60,000 per person), a financial gift from an immediate family member, and proceeds from selling an asset such as a vehicle or another property.
Borrowed money — an unsecured loan or line of credit — is treated differently. Most lenders won't accept it as a standard down payment, but it is not an absolute ban: some insured programs (such as CMHC's non-traditional down payment stream) allow borrowed funds in specific cases, at a higher insurance premium. If your down payment would be borrowed, that's a lender-and-program question, not a simple yes or no.
If you withdraw RRSP funds under the Home Buyers' Plan between 2026 and 2028, Bill C-30 (June 2026) extends the repayment grace period from two years to five — repayment still spreads over 15 years after that grace period.
The proof lenders ask for
Lenders verify the source of every down-payment dollar — both to confirm the funds are genuinely available to you and to meet federal anti-money-laundering obligations that require them to document where client funds come from. In practice, most lenders ask for:
- Around 90 days of statements for each account holding the funds. The three-month look-back is a common lender and insurer practice (not a single fixed law) — it lets them see the money is settled in your accounts and trace anything that arrived recently.
- A paper trail for large recent deposits — a car-sale contract, a transfer record from your own investment account, or similar.
- A signed gift letter for any gifted portion, stating the giver's name and relationship, the amount, and that the money is a true gift with no repayment expected. Lenders generally require the giver to be immediate family and may ask to see the deposit arrive.
- Home Buyers' Plan paperwork if RRSP funds are used — the withdrawal form (T1036) and statements showing the funds leaving the RRSP.
The principle is the same one lenders apply to income: money you can't document generally can't be used.
Where this fits in qualifying
The down payment is one of three pillars a lender assesses, alongside verified income and credit. For how much you'll actually need for a given price, and the insurance premium below 20% (putting down 20% or more removes the borrower-paid CMHC premium), use the Down Payment Calculator.
Saving strategies and city-by-city numbers: Down Payment of a House in Canada. For the full qualifying process: How to Qualify for a Mortgage in Canada.
Key Takeaways
- Canadian lenders accept down-payment funds from savings, investments, the RRSP Home Buyers' Plan, immediate-family gifts, or the sale of an asset — if you can document the source.
- Most lenders ask for about 90 days of account statements to verify down-payment funds; it's a common industry practice rather than a single federal rule.
- Gifted down-payment funds require a signed gift letter confirming the money is a gift from immediate family with no repayment expected.
- Under Bill C-30 (2026), Home Buyers' Plan withdrawals made in 2026–2028 get a five-year grace period before the 15-year repayment begins.
- Down-payment money you cannot document generally cannot be used to qualify.
Frequently Asked Questions
Sources
- CMHC — Mortgage loan insurance FAQs (accepted down-payment sources)
- CRA — The Home Buyers' Plan
- Department of Finance — Bill C-30 (HBP grace period, June 19, 2026)
- OSFI — Guideline B-20, residential mortgage underwriting
▶ Related tools and guides
- Down Payment Calculator— Minimum down payment, CMHC premium, and monthly payment for any Canadian home price.
- Mortgage income verification— Documents lenders require and how salaried, variable, and self-employed income is assessed.
- Down Payment of a House in Canada— Saving strategies, city figures, and CMHC minimums by price bracket.
- How to Qualify for a Mortgage in Canada— Income, credit, and the other pillars lenders assess alongside your down payment.