# Deleted



## Ag Driver (Dec 13, 2012)

Deleted


----------



## Rusty O'Toole (Feb 1, 2012)

Don't say anything. Just keep making your payments. As long as your loan is in good standing no one is going to check up on you. It is not fraud and you won't get in trouble.


----------



## Just a Guy (Mar 27, 2012)

Most mortgages allow you to make a one time pay down each year, usually 10-20%. 

However, converting a primary residence to a rental is more of a process than just the mortgage. You may want to look into this, especially what's involved concerning CRA, before you jump in.

While you're doing that, you should probably do an analysis to find out if it's even fiscally beneficial idea to do this...

Maybe check out a few other threads on this board, for some reason this topic has come up a lot lately.


----------



## Ag Driver (Dec 13, 2012)

Deleted.


----------



## nobleea (Oct 11, 2013)

Ag Driver said:


> A simple credit check upon renewal will show a change of address in 4 years time. At which point she would be caught red handed.
> 
> There are further implications with insurance fraud, and tax fraud.... I don't think it's a simple as keep hush hush and pay your bills.


I don't see how it could be mortgage fraud. The bank approved her based on her income and the value of the property. That's all they really care about. 
Fraud requires intent. If she had signed up for CMHC, told them she was going to live there even while planning to rent it out, then CMHC might demand something. However, they've already been paid. They might tell the bank that we're not insuring the loan anymore and the bank might say you need to drop your LTV. But generally they won't care either. Circumstances change. I doubt you're the first person to come in to this situation.


----------



## vi123 (Oct 29, 2015)

Ag Driver said:


> A simple credit check upon renewal will show a change of address in 4 years time. At which point she would be caught red handed.
> 
> There are further implications with insurance fraud, and tax fraud.... I don't think it's a simple as keep hush hush and pay your bills.


The CMHC insurance is purchased by the bank. The bank is the beneficiary, not you. Don't worry about it and just keep making your payments. No one is going to check on you.


----------



## sags (May 15, 2010)

I think I would discuss the situation with the bank to ensure everything is done properly.


----------



## gerogesin (Jan 3, 2014)

This is not fraud at all. She does not need to tell the bank and nor to they care. The only party that is going to be interested is:
1. house insurance 
2. cra (title change\ when she sells)
The only thing this is that this negatively affect your girlfriend is when it comes to buying another place as well as keeping her condo as they will calculate her debt ratio to ensure it is going to remain serviceable. 
It's wise to get the condo appraised (by a licensed appraiser) at the time she starts to rent because it is much easier to calculate capital gains for when she sells. If she does not do this, the CRA will just calculate the years owned minus years occupied to determine capital gains.


----------



## Shayne (Apr 3, 2009)

There is no problem with this at all. You don't need to notify anyone or pay any more money down. When it comes time to renew she will have to disclose it is a rental property.


----------



## Mortgage u/w (Feb 6, 2014)

Ag Driver said:


> I own a house with a CMHC mortgage. I rent out rooms, and this is my primary residence (owner occupied). My girlfriend owns a condo and plans to move into my house and make my address as her primary residence.
> 
> She holds a CMHC mortgage with 10% down, and 4 years left before her renwal, thus this would be mortgage fraud if she were to have the property as an investment property and not her primary residence. We wish to keep the condo and rent it out.
> 
> I am hoping we can approach the lender and pony up the addition 10% to lift any CMHC restrictions. Is this a possibility without any fee's or penalties? Her mortgage is through TD. How do we proceed with minimal fees/penalties?


I work in the industry as a mortgage lender and your situation is by all means NOT a fraud. Situations change all the time and if the lender and/or insurer would have to follow everyone, it would be chaos!

There is no need to 'lift' your CMHC fee. Once you paid it, you don't get it back and there is no advantage to coughing up an extra 10% - unless you want to pay off your mortgage quicker.

As long as you maintain your current mortgage in good standing, there is no need to advise anyone or change your mortgage situation. You can renew when the term is up, no problem or questions asked. 

Where the questions will be asked would be if you were to refinance to pull out some equity. Then your current situation will have to be told since you would be asking for a mortgage on a rental property. CMHC or no CMHC, you would not be able to refinance over 80% of current market value. So if the value is not there, you wouldn't be able to pull out equity regardless.

Don't worry about your mortgage and do what you gotta do with your living situation.


----------

