Non-Traditional Down Payment

 

Indicates an application for CMHC Purchase with a non-traditional source of down payment.

Non-traditional sources of down payment include: Any source that is armís length to and not tied to the purchase or sale of the property such as borrowed funds, gifts, 100% sweat equity and lender cash back incentives.

Traditional sources of down payment include: Applicantís savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (< 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency).