Quote:
Originally Posted by MoneyGuy
Yes. Most places require that funds be in your hands for a certain period of time, after which it's considered to be your funds, regardless of source.
You're confusing one company's requirements for industry requirements.
|
I don't think I am. I talked to one of my broker associates this morning who confirmed that it's a CMHC requirement that there not be a loaned down payment. All you guys are talking about is subverting that rule by saying that if the client gets the money more than 90 days in advance, you can pretend it's their own resources even if you know it's really a loan from the parents. I am not saying it doesn't happen, but as far as I am concerned it is over the line ethically speaking as a lawyer for me to act in that scenario. I'm not as clear on the Broker's obligations to the lender, but at a minimum I would think it to be borderline unethical for a broker not to advise the lender that the client is borrowing their down payment if it potentially violates CMHC requirements.
As a lawyer representing the lender and the purchaser it is definitely over the line for me not to disclose it to my lender client if I know that it's a CMHC requirement.
Others may feel differently, but in my view that's the kind of thing that should not be happening.