30 Apr

What Lenders Look for in Down Payment Documentation

General

Posted by: Avaljit Sandhu

By Avaljit Sandhu – Mortgage Broker in Winnipeg, Dominion Lending Centres

Why Your Down Payment Documents Matter

When you’re buying a home in Winnipeg or anywhere in Canada, your down payment plays a key role in getting approved for a mortgage. But it’s not enough just to have the money—you need to prove where it came from.

Mortgage lenders are required by law to ensure your down payment is legitimate, not borrowed, and compliant with anti-money laundering rules. If your documentation is unclear or incomplete, it can delay or even stop your mortgage approval.

What is Acceptable Down Payment Documentation?

1. Bank Statements (90-Day History)

Lenders usually require three months of bank statements showing your down payment savings. This helps them confirm:

  • Where the money came from (salary, savings, etc.)

  • No large unexplained deposits

  • You haven’t borrowed the down payment

💡 Tip: Make sure your statements show your name, account number, and consistent saving habits.

2. Gift Letters (If Money is Gifted)

If a family member is gifting you money, you must provide:

  • A signed gift letter confirming it’s not a loan

  • Proof of the gift amount deposited into your account

Gifts must come from an immediate relative (parent, sibling, etc.) and must be traceable.

3. RRSP Withdrawals (Home Buyers’ Plan)

If you’re using your RRSP under the Home Buyers’ Plan, you’ll need:

  • Proof of RRSP ownership

  • Withdrawal documents

  • Evidence the funds have been moved into your account

4. Sale of Assets

Selling a car, stocks, or other property to fund your down payment? You’ll need:

  • A copy of the bill of sale

  • Proof of deposit into your bank account

  • Supporting documents for asset ownership

5. International Transfers

Newcomers to Canada or those receiving funds from abroad must provide:

  • A clear paper trail from the originating account

  • Currency conversion receipts

  • Bank letters if needed

Lenders want to ensure international funds comply with Canadian banking laws.

What Won’t Work as Valid Proof?

Lenders may reject your application if:

  • You use cash deposits with no explanation

  • There are large, random transfers with no paper trail

  • Your statements are missing pages or are screenshots from apps without names or account numbers

Avaljit’s Pro Tip

As a mortgage broker in Winnipeg, I recommend reviewing your down payment docs before you put in an offer. If you’re unsure whether a document is acceptable, I can review it with you—no commitment needed.

Why It’s Important for Mortgage Approval

Lenders use your documents to verify:

  • You’re not borrowing the down payment (unless it’s a cashback or flex-down mortgage)

  • You can cover closing costs

  • Your savings history shows financial responsibility

Getting this step right means faster mortgage approval and less stress during closing.

FAQ – Down Payment Documentation in Canada

Q1: Do I have to show 90 days of savings?

Yes. Lenders require a 90-day history to confirm the money is yours and wasn’t recently borrowed.

Q2: Can I use cash for a down payment?

No. Cash deposits without documentation are not accepted by lenders. All funds must be traceable.

Q3: What if I get a gift from a friend?

Only immediate family members can give you a down payment gift that lenders will accept.

Q4: What if I’ve moved funds between accounts?

Provide statements from both accounts to show the full money trail.

Q5: How much down payment is needed in Canada?

  • 5% minimum for homes under $500,000

  • 10% on the portion from $500,001 to $999,999

  • 20% or more if over $1M or for rental/investment properties

Conclusion

Getting your down payment documents in order is one of the smartest steps you can take when preparing to buy a home. It builds lender trust and speeds up your mortgage approval. Whether you’re a first-time buyer in Winnipeg, a newcomer to Canada, or just looking to refinance, proper documentation sets the foundation for a smooth process.

Need help reviewing your documents? Reach out—I’m here to guide you every step of the way.

24 Apr

The Benefits of Pre-Approval in Manitoba’s Housing Market

All

Posted by: Avaljit Sandhu

The Benefits of Pre-Approval in Manitoba’s Housing Market

By Avaljit Sandhu, Dominion Lending Centres

Buying a home is one of the biggest financial decisions you’ll make, and preparation is key—especially in Manitoba’s competitive housing market. One essential step before you start house hunting is getting a mortgage pre-approval. This simple process offers clarity, confidence, and a stronger position when making an offer.

Let’s explore why pre-approval is a must for Manitoba homebuyers.

1. What is Mortgage Pre-Approval?

Mortgage pre-approval is a process where a lender reviews your finances to determine how much you may qualify to borrow for a mortgage. Once pre-approved, you receive a conditional commitment that outlines:

  • The maximum mortgage amount you’re eligible for

  • The estimated interest rate

  • The term and type of mortgage

  • How long the rate hold is valid (usually 90 to 120 days)

2. Why is Pre-Approval Important in Manitoba?

2.1 You Know Your Budget

The housing market in Manitoba, especially in cities like Winnipeg, can move fast. Getting pre-approved helps you:

  • Shop within your price range

  • Avoid falling in love with homes outside your budget

  • Understand your monthly payments in advance

2.2 You Can Act Fast in a Competitive Market

In a hot market, pre-approved buyers are taken more seriously. Sellers are more likely to accept an offer from someone who’s already spoken to a lender. It shows you’re a serious, qualified buyer—ready to move forward.

2.3 You Lock in a Rate

Pre-approvals typically come with a rate hold, which can protect you from rising interest rates while you shop. If rates go up during your house hunt, you still get the lower rate. If rates drop, you may be able to requalify at the better rate.

3. What Do Lenders Review for Pre-Approval?

To get pre-approved, lenders will ask for documents that show your financial picture. This usually includes:

  • Letter of employment and recent paystubs

  • T4s and Notices of Assessment from the past 2 years

  • Credit history and score

  • Down payment source (with 90-day history on bank statements)

  • Your status in Canada (e.g., citizen, PR, work permit)

If you’re on a work permit or a newcomer to Canada, additional documents may be required such as proof of residency, alternative credit history, or extended bank history.

4. Pre-Approval vs. Pre-Qualification

It’s easy to confuse the two, but they are not the same.

 

Feature Pre-Qualification Pre-Approval
Based on estimated income? Yes No
Credit check required? No Yes
Reliable for house hunting? No Yes
Rate hold included? No Usually yes

Pre-approval is the one that carries real weight when shopping for a home.

5. How to Get Pre-Approved in Manitoba

Step-by-Step Guide:

  1. Speak with a Mortgage Agent – Someone like myself can walk you through the process and explore your options.

  2. Submit Documents – Income verification, down payment details, and credit history.

  3. Wait for Review – Your application is assessed by a lender.

  4. Get Your Pre-Approval Letter – This shows how much you’re qualified to borrow and includes your rate hold.

Frequently Asked Questions (FAQ)

1. Does pre-approval guarantee I’ll get the mortgage?

No, it’s a conditional approval. Final approval depends on the property you choose and any changes in your financial situation.

2. How long does mortgage pre-approval last?

Typically, pre-approvals are valid for 90 to 120 days, depending on the lender.

3. Can I get pre-approved if I’m self-employed?

Yes, but you may need to provide extra documentation such as 2 years of tax returns, Notice of Assessments, and business financials.

4. Does pre-approval hurt my credit score?

It results in a soft inquiry or one hard pull, which usually has a minimal impact. It’s a standard part of the process.

5. Can I still be pre-approved if I’m new to Canada?

Yes, lenders have special programs for newcomers, including those on work permits or with limited credit history. Alternative documentation may be required.

Conclusion

Getting pre-approved is more than just paperwork—it’s peace of mind. Whether you’re a first-time home buyer in Winnipeg or moving to a new neighborhood in rural Manitoba, pre-approval gives you the power to house hunt with confidence. It saves you time, avoids surprises, and gives you a competitive edge.

Ready to get pre-approved?
Let’s chat—I’ll walk you through it and help you prepare for homeownership.

22 Apr

How Work Permits Affect Mortgage Approval in Canada

General

Posted by: Avaljit Sandhu

How Work Permits Affect Mortgage Approval in Canada

By Avaljit Sandhu, Dominion Lending Centres

When applying for a mortgage in Canada, your immigration status plays a significant role in how your application is evaluated. If you are on a work permit, it’s important to understand the factors that lenders consider and how your work permit status can impact your ability to secure financing. This guide breaks down everything you need to know about how work permits affect mortgage approval in Canada.

1. Understanding Your Work Permit Status

A work permit in Canada allows foreign nationals to legally work in the country for a specific employer and duration. There are different types of work permits, including:

  • Open Work Permits: These permits allow you to work for any employer in Canada.

  • Employer-Specific Work Permits: These permits are tied to a specific employer and a designated job.

Lenders will assess your work permit status to determine the length of time you’ve been working in Canada, the stability of your job, and whether your employment is likely to continue. If you’ve only recently arrived in Canada, some lenders may request additional documentation.

2. Impact on Mortgage Approval

2.1 Stability of Employment

One of the key factors lenders consider when approving a mortgage is employment stability. If you’re on a work permit, lenders will review the following:

  • Length of Employment: Ideally, you should have been employed with your current employer for at least six months. Longer employment periods provide more assurance of stability.

  • Type of Employment: Lenders will also look at the stability of your job sector. If you work in high-demand fields such as healthcare, technology, or skilled trades, you may have a better chance of approval.

  • Income Consistency: Lenders will review your pay stubs and T4s to ensure your income is consistent and sufficient to support your mortgage payments.

2.2 Credit History and Down Payment

Lenders also look at your credit history and down payment. If you’ve been in Canada for less than a year, you may not have a long Canadian credit history. However, there are options to demonstrate your creditworthiness:

  • Alternative Credit History: If your Canadian credit history is limited, lenders may allow you to provide alternative credit information, such as proof of car payments, utility bills, or consistent rent payments.

  • Down Payment: Having a larger down payment (ideally 20% or more) can help offset the lack of an extensive credit history and improve your chances of mortgage approval.

3. Required Documentation for Work Permit Holders

When applying for a mortgage as a work permit holder, you’ll likely need to provide additional documentation. Common requirements include:

  • Work Permit Status: Documentation confirming the validity and duration of your work permit.

  • Employment Verification: A letter from your employer confirming the length of your employment, your job title, and your income.

  • Bank Statements: Recent bank statements will be required to verify that you have enough funds for the down payment and closing costs.

  • Alternative Credit History: If you’ve been in Canada for less than a year, you may need to provide evidence of alternative credit, such as utility bills or rental history.

4. Special Considerations for Newcomers to Canada

If you’re new to Canada and have been on a work permit for less than a year, it may be more challenging to meet the standard requirements. However, some lenders specialize in offering mortgage products for newcomers. These lenders may be more flexible with work permit holders and alternative documentation.

4.1 Co-Borrowers Can Help

If you’re applying with a co-borrower who is a Canadian citizen or permanent resident, it can strengthen your mortgage application. The co-borrower’s stable employment and established credit history can provide additional assurance to lenders.

5. Tips for Improving Your Chances of Mortgage Approval

Even if you’re on a work permit, there are several strategies you can use to improve your chances of mortgage approval:

  • Establish a Canadian Credit History: Consider applying for a credit card or small loan to build a credit history in Canada.

  • Save for a Larger Down Payment: The more you can contribute towards the down payment, the better your chances of approval, especially if your credit history is limited.

  • Work with a Mortgage Broker: A mortgage broker can help you navigate the mortgage approval process, especially if you’re on a work permit. Brokers have access to a wide range of lenders and can find options tailored to your unique situation.

Frequently Asked Questions (FAQ)

1. Can I get a mortgage with a work permit in Canada?

Yes, you can get a mortgage with a work permit in Canada. However, lenders will assess factors like your length of employment, income stability, and credit history. Providing additional documentation, such as proof of consistent rent payments or utility bills, can help strengthen your application.

2. How long do I need to be employed in Canada to qualify for a mortgage?

Ideally, you should have at least six months of employment with your current employer. This shows that you have job stability, which is a key factor for lenders.

3. Do I need a large down payment if I’m on a work permit?

A larger down payment (e.g., 20% or more) can improve your chances of mortgage approval, especially if you have limited credit history in Canada. It reduces the lender’s risk and shows your financial responsibility.

4. What other documents do I need to provide?

In addition to the usual income and credit documentation, you may need to provide proof of your work permit status, employment verification letters, and recent bank statements to show that you have the necessary funds for your down payment.

5. Can I apply for a mortgage if I’ve been in Canada for less than a year?

Yes, you can still apply for a mortgage if you’ve been in Canada for less than a year. In such cases, lenders may allow alternative credit documentation, such as proof of rent payments or utility bills, to support your application.

Conclusion

Securing a mortgage while on a work permit in Canada is entirely possible, but understanding the process and preparing the necessary documentation is key. By maintaining stable employment, building your credit history, and saving for a larger down payment, you can improve your chances of mortgage approval. Working with a mortgage broker who understands the nuances of the process can also make the journey smoother.

20 Apr

First-Time Homebuyer Mistakes to Avoid in 2025

All

Posted by: Avaljit Sandhu

Sure! Here’s a fully structured SEO-optimized blog post titled “First-Time Homebuyer Mistakes to Avoid in 2025” by Avaljit Sandhu from Dominion Lending Centres – Mainstream Mortgages. It uses proper heading tags (H1 through H6) and includes natural keywords for strong LinkedIn and SEO impact.

First-Time Homebuyer Mistakes to Avoid in 2025

By Avaljit Sandhu, Dominion Lending Centres – Mainstream Mortgages

Buying your first home is exciting—but it can also be overwhelming if you’re not properly prepared. First-time homebuyers often make avoidable mistakes that can cost them money, time, and peace of mind. In this article, we’ll explore the most common first-time homebuyer mistakes in 2025 and how you can steer clear of them.

🏡 Why First-Time Homebuyers Struggle

Lack of Preparation

Many first-time buyers jump into the housing market without doing their homework. Understanding the mortgage process, market conditions, and what you can realistically afford is essential before making any offers.

Overestimating Budgets

It’s easy to get emotionally attached to a beautiful home, but buying beyond your means can lead to financial stress. Always calculate what you can afford—not what you want to afford.

Not Getting Pre-Approved

Skipping mortgage pre-approval is one of the most common and costly mistakes. Pre-approval gives you a clear budget, shows sellers you’re serious, and speeds up the purchase process.

📊 Top Mistakes to Watch Out For

Skipping Mortgage Pre-Approval

Getting pre-approved is crucial. It gives you a realistic price range and increases your bargaining power with sellers.

Ignoring Additional Costs

Many first-time buyers forget to account for closing costs, legal fees, home insurance, property taxes, and maintenance. These can add up fast and should be included in your budget.

Not Understanding Mortgage Terms

Not all mortgages are created equal. Fixed vs. variable rates, amortization periods, and prepayment privileges can greatly affect your long-term finances.

Buying Based on Emotion, Not Budget

It’s important to love your new home—but don’t let emotion overrule financial logic. Stick to your budget to avoid buyer’s remorse.

Not Working With a Mortgage Professional

Navigating the mortgage world alone can be tough. A mortgage expert ensures you get the best terms, avoid penalties, and fully understand your commitment.

👨‍💼 How a Mortgage Agent Can Help

Access to Multiple Lenders

Unlike banks, mortgage agents work with various lenders—giving you more options and better chances at a lower rate.

Better Interest Rates

Agents often have access to exclusive deals not available to the public or major banks.

Help Understanding Complex Documents

Buying a home involves a lot of paperwork. A mortgage agent walks you through everything so you don’t miss a critical detail.

📣 Why Choose Avaljit Sandhu, DLC – Mainstream Mortgages

Personalized Service

Every client’s situation is unique. Avaljit works closely with you to understand your needs and create a tailored mortgage plan.

Local Winnipeg Expertise

With deep knowledge of the Winnipeg housing market, Avaljit can help you make informed choices that match your goals.

Support for Newcomers and Work Permit Holders

Navigating Canadian mortgage rules can be challenging for new immigrants or temporary workers. Avaljit specializes in guiding you through the process with care.

💬 FAQ – First-Time Homebuyer Questions

Q1: What’s the biggest mistake first-time buyers make?

A: Not getting pre-approved or not budgeting properly. It’s important to know what you can afford and what additional costs may arise.

Q2: How can I find out how much I can afford?

A: Book a free consultation with Avaljit Sandhu. We’ll assess your income, credit, and goals to help you determine your homebuying budget.

Let’s Get You Home

If you’re buying your first home in 2025, avoid costly mistakes by working with a professional. Contact Avaljit Sandhu at Dominion Lending Centres – Mainstream Mortgages for a free consultation and get the right mortgage guidance from day one.

15 Apr

Consolidating Debt in Retirement with the CHIP Reverse Mortgage

All

Posted by: Avaljit Sandhu

Consolidating Debt in Retirement with the CHIP Reverse Mortgage

By Avaljit Sandhu | Dominion Lending Centres – Mainstream Mortgages

Managing Debt in Retirement Can Be Overwhelming

Debt is stressful at any age, but in retirement—when income is fixed or limited—it can become a serious burden. Many retirees look to consolidate debt to simplify payments and reduce interest costs. However, traditional debt solutions often come with limitations that make them hard to access in later years.

Why Traditional Debt Consolidation May Not Work for Retirees

Consolidation strategies like personal loans, HELOCs (Home Equity Lines of Credit), or mortgage refinancing typically require:

  • Strong credit scores

  • Proven, consistent income

  • Ability to make monthly payments

These requirements can be tough to meet if you’re retired and living on a fixed income.

The CHIP Reverse Mortgage: A Flexible Debt Solution for Canadians 55+

If you’re 55 or older and a homeowner, the CHIP Reverse Mortgage from HomeEquity Bank offers a unique opportunity to access your home equity to consolidate debt—without monthly mortgage payments.

Key Benefits of the CHIP Reverse Mortgage

✅ No Monthly Payments

With the CHIP Reverse Mortgage, repayment is only required when you sell your home, move out, or pass away.

✅ Easy to Qualify

Approval is based on your home equity, not income or credit. If you and your spouse are both over 55, you can qualify—even if your credit is limited.

✅ Tax-Free Cash

Withdraw up to 55% of your home’s appraised value tax-free, without affecting benefits like OAS or GIS.

✅ Flexible Payout Options

Receive the funds as a lump sum or in installments, depending on your financial needs.

✅ Built-In Protection

The CHIP Reverse Mortgage comes with a No Negative Equity Guarantee—you or your estate will never owe more than the home’s fair market value when the loan is due.*

Comparing Debt Consolidation Options in Retirement

Option Pros Cons
CHIP Reverse Mortgage No monthly payments, easy approval, tax-free funds Home equity is used
Refinancing / HELOC Access equity at low interest Requires income and strong credit
Personal Loan Quick access to cash High interest rates for poor credit
RRSP Withdrawals Immediate funds Triggers taxes and reduces future retirement income
Balance Transfer Cards Temporary interest relief Requires income to make payments

Take Control of Your Retirement Finances

Don’t let debt define your golden years. The CHIP Reverse Mortgage gives you the freedom to stay in your home, consolidate your debt, and reduce financial stress—all without ongoing loan payments.

Ready to explore if this solution is right for you?

Contact Avaljit Sandhu – Your CHIP Reverse Mortgage Specialist

As a licensed mortgage agent with Dominion Lending Centres – Mainstream Mortgages, I specialize in helping retirees and near-retirees find smart solutions for their financial goals. Let’s discuss how the CHIP Reverse Mortgage can help consolidate your debt and bring peace of mind in retirement.

📞 Call Now
📧 Email Avaljit Sandhu
🌐 Visit My Website

FAQ – CHIP Reverse Mortgage & Retirement Debt Consolidation

What is the CHIP Reverse Mortgage?

The CHIP Reverse Mortgage is a loan for homeowners aged 55+ that lets you access a portion of your home equity tax-free, with no monthly payments. Repayment occurs only when you move, sell, or pass away.

Can I consolidate credit card or personal loan debt with CHIP?

Yes, many Canadians use CHIP to pay off high-interest debts like credit cards or unsecured personal loans.

Will this affect my pension or government benefits?

No. Because CHIP funds are tax-free, they do not affect benefits like OAS or GIS.

What happens if the value of my home drops?

With the No Negative Equity Guarantee, you or your heirs will never owe more than the fair market value of your home at the time of repayment.*

FAQ – About Avaljit Sandhu & Dominion Lending Centres

Who is Avaljit Sandhu?

I am a mortgage agent based in Winnipeg, Manitoba, with Dominion Lending Centres – Mainstream Mortgages. I help first-time buyers, new immigrants, and retirees navigate mortgage financing.

What services does Dominion Lending Centres offer?

DLC provides access to a wide range of mortgage products, including CHIP Reverse Mortgages, purchase financing, refinances, and renewals through Canada’s top lenders.

Is there a cost to work with you?

There is no cost to most clients, as I am paid by the lender after your mortgage closes. I am committed to helping you find the best solution at no additional expense.

Final Thoughts

The CHIP Reverse Mortgage is an excellent tool for Canadians 55+ who want to simplify retirement, reduce stress, and take control of their debt. If you’re interested in learning more, reach out today—I’m here to help.