Definition
Federal rules and CMHC guidelines explicitly prohibit financing the down payment through borrowing for insured loans. The down payment must come from non-borrowed sources:
**Accepted sources**: - Personal savings (90-day history required) - RRSP (via HBP) or FHSA - Gift from a relative (gift letter + proof of funds) - Sale of another property (or asset) - Documented inheritance or estate
**Refused sources**: - Personal loan or unsecured line of credit - Credit card cash advance - Loan from an employer or company - Any financing whose repayment creates an additional monthly debt (except programmatic exceptions like down payment assistance programs)
Verification: lenders require 90 days of bank history to confirm funds were not suddenly deposited following a borrowing. A large recent deposit triggers a request for explanation and documentation.