Crypto Holders in Canada Can Use Digital Assets as Down Payment, But With Caveats

Crypto holders in Canada may be wondering if they can use their digital assets as a down payment for a home. The short answer is no, but with some planning and patience, it's possible to convert your crypto to cash and use it for a mortgage.

According to a recent survey, about 1 in 4 Canadians now own crypto assets or funds, up from just 10% in 2023. However, mortgage lenders in Canada won't accept direct payments in crypto, citing regulations and concerns over money laundering and theft.

To use crypto as a down payment, you'll need to convert your coins to Canadian dollars and deposit the funds into your personal bank account. Most lenders prefer the down payment funds to be in your account for at least 90 days, left untouched until closing. You'll also need to provide bank deposit records, exchange buy/sell records, and wallet transaction history to the lender.

Ben Skerrett, a True North Mortgage expert broker, notes that many clients don't realize the prep time required for a crypto-funded down payment. He advises clients to plan ahead and convert their crypto to cash when it suits their homeownership goals, rather than trying to time the market until the last minute.

While using crypto as a down payment may not be straightforward, it's not impossible. With some planning and patience, crypto holders can turn their digital assets into a down payment for a home.