The Minimum down payment required for a mortgage is 5%. On rental or investment properties it is 20%. This is a government law.
Sources for down payment can be banks accounts, investments, Lines of credit (secured against property), Gifted funds.
Bank Accounts: If a borrow has savings in a bank account or accounts, three months transaction history of the accounts must be provided for down payment verification. Any deposit in the account over the past three month period that is higher than $2000.00 must have a paper trail. So if making a large deposits into the account make sure there is a paper trail for the deposit otherwise make deposit smaller.
Investments: Investments such as RRSP, GICs, mutual funds or stocks. Again a three month history of the account will need to be provided to the mortgage broker/lender for down payment verification. In some cases the lender will also require the funds to be deposited into a bank account (provide transaction) before closing.
Secured Line of Credit: A borrower may use a secured line of credit as a down payment. Equity in a property is considered an asset. Secured Lines of Credit on personal or investment properties can be used.
Gifted Funds: A borrower may receive funds from a immediate family member to be used for down payment. The borrower will need to provide transaction of the funds being deposited into their account along with a signed gift letter which is provided to the borrower by the mortgage broker.