Down Payment Tips
Down Payment – Going forward into 2024 and based on the news of late with some major banks being fined due to not following FINTRAC procedures around suspicious transactions I am expecting FINTRAC will be all over our lenders and monitoring very closely the movement of money. Real Estate is the number one vehicle used to launder money in Canada so when you buy a new home the downpayment and deposit money has to be paper trailed to be compliant with the Anti Money Laundering & Terrorist Financing Act. Here are a few tips if you are planning on buying a new home in 2024 to make things easier for yourself.
1 – If you are New to Canada make sure that you move your money into Canada well before you even think of going out to look at new homes. I am seeing way to many accepted offers and the down payment money is not even in Canada yet and clients have no intention of moving the funds until the 11th hour which is too risky.
2 – Accumulate your down payment money into one account, the more accounts the more bank statements are going to be required.
3 – Stop moving money around between multiple accounts on a frequent basis as this will raise a red flag and require more tracing and time to paper trail the funds.
4 – Large deposits into your bank account require explanation and paper to support where the funds are coming from so if it is a cheque then photocopy the cheque before you deposit it. If it is direct deposit you should also have paper to support, especially if it is coming from CRA.
5 – If you plan on using the cash from under your mattress for your down payment you best have a good explanation as to how you acquired it and make sure it is put into your bank account many months before you plan on going out to look at houses.
Planning well in advance will save you a lot of frustration/stress especially when things get hectic as buying a home is a very busy time. Please do not hesitate to reach out if you have any questions. 506 472-6645 email@example.com