In a recent communication TD has updated it documentation requirements for down payments.
If a down payment comes from an inheritance settlement, insurance settlement or lottery/casino winnings – underwriter should be properly informed and all supporting documents should be supplied.
A letter of probate from the lawyer for an inheritance, a copy of the letter and the cheque from the insurance company if the down payment comes from an insurance settlement. A letter from an insurance company may be acceptable if the letter confirms the insurance settlement amount. For a lottery or Casino windfalls copy of the cheque or receipt to be provided.
If a down-payment has been transferred using a wire payment within 30 days before commitment approval, in that case all supporting documents are required to establish the source of funds. In case of a borrowed wired funds the loan payment should be added to the TDS calculation.
If any down payment originates from any of the broadly sanctioned countries (which includes Iran) the mortgage application should not be submitted to IMAC.
Please contact your BDM for more details.
