GuidesCommercial
Commercial down payment: accepted sources
Savings, equity from another property, vendor and partners.
Personal or corporate savings
Equity drawn from another property you own
A vendor take-back balance
Common sources
- Personal or corporate savings
- Equity drawn from another property you own
- A vendor take-back balance
- A partner’s contribution to the purchase
What must be proven
Lenders trace funds over three months. Prepare statements showing where the money comes from.
The vendor take-back
The seller agrees to be paid later for part of the price. That reduces your immediate outlay.
Lenders usually require that balance to rank behind their mortgage.
Money from a third party
- A family gift, confirmed by a signed letter
- A loan from a relative, declared as debt
- A partner’s contribution, with a written agreement
- An investor, who becomes a co-owner
What is refused
A cash deposit with no clear origin is rejected. Lenders must be able to trace every amount.
The three-month rule
Funds must sit in your account for three months.
A recent deposit needs an explanation and proof of origin.
Prepare that proof before applying, not after.
Combining several sources
Nothing prevents combining savings, equity and a partner’s contribution.
Each source must be documented separately.
Prepare a table showing where every dollar comes from.
