Down payment sources
Nothing is assembled yet. This is what has to be on the table on closing day.
Add what you have in each account and this becomes a plan rather than a number.
Typical figures
Needed on closing day
The down payment is only part of it. Closing costs are due the same day, and the credits that arrive that day reduce the bill — the ones that arrive at tax time do not.
PMI of $191 a month starts after closing, not before it — it is not part of what you need to assemble here, and it stops on its own around month 111.
Cheapest money first
Drawn in this order because each source costs more than the one above it. Nothing below is touched until everything above is used.
Already taxed. Nothing further to pay to use it.
Not taxable in Canada. Your lender will want a signed letter saying it is a gift, not a loan.
Selling realises a capital gain. Half of it is added to your income and taxed at your marginal rate — which is why it is last.
Nothing here costs you tax or creates an obligation.
Add a monthly saving rate to see when the shortfall closes.
What monthly saving reaches, and when. If the target is out of reach at this rate the answer is no month at all, not a rounded-up one.
Add what you have in each account and this becomes a plan rather than a number.
What you need, and what each account covers
The target first, then the accounts drawn against it in the order they are drawn — cheapest money first, so the reader can see which balance the shortfall actually turns on.
- Down payment
- $34,000
- + Closing costs
- $6,861
- = Needed on closing day
- $40,861
- − Drawn from your accounts
- $0
- = Still to find
- $40,861
Not modelled here
2 things this page does not model. Nobody publishes a figure for them, so they are named here rather than guessed at.
- Where the money came from, and how long it has been there. A lender will ask for statements covering the period before closing, and anything that arrived recently from outside your own accounts has to be explained — a gift needs a signed letter, money sent from another country needs a paper trail. How far back each lender looks is its own policy and none of them publish it, so no period is named here.
- IRA and 401(k) options. A first-time buyer may withdraw up to $10,000 from a traditional or Roth IRA without the usual early-withdrawal penalty, and a 401(k) loan is a separate source many plans allow — neither is modelled above, and neither substitutes for cash you already have without its own cost or repayment terms.
What you have saved
Every figure that carries a sourcing record names where it came from: a dated published source, an estimate we disclose, or nothing at all where nothing is published.
Rules last verified 2026-09-03