Short answer
The lender, broker and lawyer need to understand the source of funds, confirm the real borrower and identify unusual transactions. Keep a clear trail for deposits, gifts, investment sales, property proceeds and overseas transfers.
The client problem
The client moves money through several accounts during the last 90 days, then cannot show where the original funds began.
A practical Ontario example
Savings moved from an investment account to chequing and then to the lawyer. Keeping both statements and transfer confirmations turns three transactions into one explainable source.
Legitimate routes may still exist
A truthful file may be assessed through standard A lending, alternative/B lending, or an MIC/private solution depending on income, credit, equity, property and timing. No lender route makes false information acceptable.
Policy boundary: FSRA regulates mortgage-brokering conduct in Ontario; lenders still set their own underwriting policies. Fraud-prevention duties do not authorize altering or hiding application facts.
Questions to ask now
- Where did the money originate?
- Can each transfer be matched?
- Is any portion borrowed or gifted?
- Do names and account owners match?
Rajiv’s practical view
Avoid unnecessary transfers before closing. If a large deposit is legitimate, preserve the evidence rather than trying to make it disappear.
Source and context
General Ontario education. Results depend on the contract, lender, administrator, property, equity, documents and legal advice. No approval or legal outcome is promised.
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Mortgage declined? Start here · Closing-problem guidance · Mortgage Knowledge Centre
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Rajiv Verma, Mortgage Broker · Ontario