# How do lenders verify my down payment source?

> Lenders meticulously trace your down payment's origins to ensure it aligns with regulations and sound lending practices.

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/how-do-lenders-verify-my-down-payment-source

## Answer
Lenders meticulously trace your down payment's origins to ensure it aligns with regulations and sound lending practices. This protects both you and the lender! Imagine Sarah, a first-time buyer, using years of savings for her down payment. The lender will request bank statements to confirm fund consistency and source. Any gifted portion requires a formal gift letter. Lenders adhere to strict debt serviceability metrics detailed in the RMUP.

## Institutional highlights
- Your lender will check where your down payment comes from.
- If your down payment is a gift, you'll need a letter stating you don't have to pay it back.
- Using borrowed money for your down payment can make it harder to get approved.
- Lenders keep careful records of all mortgage documents.
- Your lender will look closely at your income and debts to see if you can afford the mortgage payments.

## Related guide
- https://ratellow.com/guides/borrowed-down-payment

## Sources
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0