Down Payment & Closing Costs

Depending on the mortgage program, acceptable sources may include personal savings, investments, proceeds from another property, eligible FHSA or RRSP withdrawals, and eligible gifted funds from immediate family. The source must be properly documented.

Often yes. Many lenders accept a non-repayable gift from an eligible immediate family member, supported by a gift letter and proof that the funds have been deposited. Exact requirements vary by lender and insurer.

Some programs may permit borrowed down payment from an acceptable source, but this can affect qualification because the repayment obligation must be considered. It is not suitable or available for every file.

Lenders commonly ask for a history of the funds and may require approximately 90 days of statements, but the exact documentation depends on the source and lender. Large deposits usually need a clear paper trail.

Common closing costs can include land transfer tax, legal fees and disbursements, title insurance, adjustments, appraisal costs when applicable, moving expenses and other transaction-specific charges. A practical budget should be kept in addition to the down payment.

There is no single amount that fits every purchase. Mortgage insurers and lenders may require proof that you have sufficient funds for closing costs, and the actual amount depends on the price, municipality, property and transaction. Your lawyer can provide the most precise closing statement.

Ontario land transfer tax is generally payable when real property changes ownership. Eligible first-time buyers may qualify for a provincial refund of up to $4,000. Toronto purchases can also involve municipal land transfer tax, with separate rules and rebates.