Using Crypto for Your Home Down Payment More Complicated Than You Think

Cryptocurrency ownership in Canada has surged, with 25% of Canadians now holding crypto assets or funds, up from 10% in 2023. This growth raises questions about using crypto for major purchases, like a home down payment. However, Canadian mortgage lenders won't accept cryptocurrency directly. Instead, they require converting crypto to Canadian dollars, and even then, approval isn't guaranteed.

The key to success lies in timing. Ben Skerrett, an expert broker at True North Mortgage, explains that funds must be deposited into a bank account and left untouched for at least 90 days before a lender will consider them. Many clients underestimate this prep time, often resorting to other funding sources at the last minute.

For those who haven't met the 90-day seasoning period, alternative lenders may offer options, though at higher rates. First-time home buyers have another avenue: holding crypto ETFs in registered accounts like RRSPs, TFSAs, or First Home Savings Accounts (FHSAs). Withdrawals from these accounts can provide access to insured mortgages without the need for seasoning.

Regulatory changes may simplify the process in the future. Canada's recent passage of the Stablecoin Act, set to take effect in 2027, could pave the way for cleaner crypto transactions. For now, planning ahead and consulting with mortgage experts remains crucial for those looking to use crypto for home purchases.