Rule

Why are unexplained deposits and account transfers a mortgage concern?

Short answer

The lender must understand whether the money is yours, borrowed, gifted or connected to a third party. Repeated transfers do not make funds stronger; they make the trail harder to verify and can delay or stop closing.

The client problem behind the question

The buyer moves the same savings through several accounts to earn interest, then cannot match the statements within the lender’s deadline.

What the official guidance establishes

FINTRAC reporting guidance treats source-of-funds information as relevant to suspicious-transaction reporting. Lenders also set down-payment and anti-fraud documentation requirements.

Where the answer can change

There is no universal law requiring exactly 90 days of statements for every mortgage, but many lenders use that period and may request more. Legitimate large deposits still need an explanation and documents.

A practical Ontario example

Illustration only: A $60,000 deposit comes from a vehicle sale, then passes through two joint accounts. Without the bill of sale and each statement, the lender cannot confirm the source or whether a new loan exists.

What to do before committing

Keep statements for every account, sale agreements, gift letters and transfer receipts. Avoid cash and unnecessary movement during the review period, and tell the broker about large deposits at the start.

Questions Rajiv would ask

  • What deadline, condition or closing problem must be solved?
  • Which facts are confirmed by original documents and which are still assumptions?
  • Which law, insurer rule or lender policy applies to this exact transaction?
  • What happens to the cash requirement and monthly payment if the first option fails?
  • What is the practical route back to lower-cost financing, if temporary financing is used?

Rajiv’s broker perspective

A difficult mortgage can be solved only with accurate information. I would rather explain a real income gap, credit issue or closing shortfall to the right lender than submit a polished story that the documents do not support. The legitimate options may include another A policy, alternative/B lending, an MIC or private bridge, a larger down payment, a delayed closing or a lower purchase price.

Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre

Would a second opinion help before you commit?

Send Rajiv the property, deadline, financing concern and the documents already available. He can identify the missing questions, compare practical mortgage routes and explain the next step in plain language.

Book a mortgage strategy session   Call Rajiv: 647-291-7116

Sources and context

Read the primary source

Source checked
2026-09-08
Effective
2026-09-08
Next review
2026-12-08
Assumptions and limitations
The result depends on current law, insurer and lender policy, verified documents, property, borrower circumstances and professional legal or tax advice where applicable.

Source checks are snapshots, not a guarantee that rules have remained unchanged. Individual circumstances and lender policies vary.

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