I didn't say don't do it, I just said that there are tax implications. If the house was a permanent residence, then a rental, and then sold, capital gains apply to the appreciated value of the house from the time you moved out to the time you sold. If you go to the bank with a signed lease and the downpayment, the bank will lend you the money. You need the 25% downpayment because CMHC will only insure mortgages for primary residences (this may have changed). I researched this topic fairly heavily a couple of years ago, things may be different now for qualifying and such. Lets face it, if this was such an easy thing to do, and such a big cash cow, everybody would be doing it
jc
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