Using Bitcoin Or Other Cryptocurrency For Downpayment On Your Home Purchase
As more and more people start using Cryptocurrency, we are seeing more and more demand from clients who want to use their Crypto towards their down payment for their home purchase.
When providing proof of your down payment to your mortgage lender, you are required to provide a 90-day history of all of your funds being used towards your down payment. This is due to the Proceeds of Crime (Money Laundering) and Terrorist Act of Canada and the goal of this legislation to prevent money laundering in real estate.
Most Bank's policy at this time regarding using Crypto for your downpayment is that you need to provide 90 days history of the funds via statements that show your transaction history for the 90 day period. The Statements must also show your name and account number. The issue arises because the Crypto accounts do not show your name/account history, and therefore you cannot prove ownership of these Crypto accounts. By their nature, cryptocurrencies are traded anonymously.
If you want to use Crypto for your down payment, please plan ahead and deposit the money into your standard bank account at least 90 days prior to making a home purchase.
Should you need any further clarification, please feel free to contact us.
We will be happy to help.