Definition
Liquid assets are funds easily convertible to cash: bank accounts, TFSA, RRSP (eligible via HBP), FHSA, redeemable GICs, non-registered investments. Long-term investments, real estate, and vehicles are generally not counted as liquid.
What lenders verify: - **Down payment**: exact required amount, documented source - **Closing costs**: notary, welcome tax, inspection — typically 1.5-4% of purchase price additionally - **Post-closing reserve**: some B-lenders and CMHC require the borrower to still have 1-3 months of payments in the bank after the transaction
Non-liquid assets often incorrectly presented: - Defined benefit pension funds (not accessible until retirement) - Life insurance cash surrender value (may be accessible but slowly) - Cryptocurrencies (volatility — some lenders refuse as down payment source)