Quote:
Originally Posted by tiger_handheld
I thought new rules stated that dp cannot be used from borrowed funds (ie. LOC) - am i missing something?
Are you a broker because I'm thinking of doing exactly what you are saying but from I'm reading its not possible. would like to chat if you are broker...
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Not a broker, but this was the strategy that we were prepared to use. Fortunately, we sold our previous home in less than a week and had a quick close and bumped up the closing date of our current home.
You can use borrowed funds for down payments for mortgages that don't require CMHC insurance. Even if you use CMHC insurance, you're still allowed to use home equity to secure another mortgage. You're not allowed to use credit cards or other unsecured loans for CMHC mortgages.