Episode 20 Transcript – cash for downpayment

Hello! This is Jessi Johnson and I would like to talk to you about down payments. Now there are many ways of showing, improving your down payment. What I mean is you can use RRSP’s, you can use equity in your own home, you can obviously use cash in the bank, other forms of investments, sometimes you can even use stocks if the down payment is large enough. The problem I get very often is, not very often but often enough to make a video blog about it is, people say I’ve got $50,000 in the bank and another $20,000 in cash. Now I know a lot of self employed clients will keep a considerable large amount of cash around as a float whether you’re in the service industry or retail. The problem is I can’t do much with it. What I mean is, the banks require three months history to show proof of accumulation of your down payment. So if you have say $20,000 and that’s your only down payment, you stick it in your account a couple days before I ask for it, that’s not going to fly. This money has to be put periodically in your bank account or you can do it in one lump sum but it has to sit there for at least 2 1/2 months, 2 months to show that it’s yours even though it may have been your money for a very, very long time but you need to prove, by having it in the bank, that it’s yours. Anyways, that my thought of the day for those of you who have a down payment under a pillow or at your business as a float but that’s what you need to do in order to make the down payment yours. Again I am Jessi Johnson, you can reach me at www.firsthomeinfo.ca and you have a good day, bye!