Spending some savings before mortgage closing?

[Hedgehoggy]

Does spending some savings before mortgage closing have effect on the closing (savings was $40,000 at mortgage approval and will be $30,000 at mortgage closing)? Thank you.

[LondonHomes]

As long as you have enough money to cover what you need to bring to the closing you should be fine.

On the other hand if this means you need to borrow and extra 10k it's possible that you would now be required to get CMHC insurance. You would need to provide more details to get a better answer.

[Hedgehoggy]

As long as you have enough money to cover what you need to bring to the closing you should be fine.

On the other hand if this means you need to borrow and extra 10k it's possible that you would now be required to get CMHC insurance. You would need to provide more details to get a better answer.

The deposit/downpayment has already been paid and the money for closing costs will not be spent. The $10000 to be spent is just from our TFSA to purchase items for the new house. Just want to make sure that we won't have any problems with closing if we spend this. Thanks again.

[realist]

Also make sure you have budgeted for all the lawyers, RE fees, taxes etc. that come due at or soon after closing.