Greg "An individual must enforce his own meaning in life and rise above the perceived conformity of the masses" (Anton LaVey)
invst4profitIn Ontario it is generally 1 year you must reside in the property however if at time of mortgage application you are intending to move out and rent it could still be considered mortgage fraud.
The key is intent. As you are attempting to circumvent mortgage regulations to avoid having to pay 20% down on a investment property it is fraud.
It is regularly done but possibly not by any investors on this forum. :)
The question is degree of risk and penalty if caught.
SherilynnActually there is a third group of which I am a member: those who intend to live in the property for at least a year and then find a great deal on another property and end up moving sooner.
The original post specifies he's not planning on moving in at all. (The NOT was in capital letters).
Tony MandriqueFortune Homes Corp.Phone & Fax: 1-888-989-1689 (24/7 voice mail)E-mail: firstname.lastname@example.org
SherilynnYes, but then he posed the question 'for how long would he need to live in the place before it was not considered mortgage fraud.'
My response was more related to that, with the answer being that if he moved in specifically to put low money down on an investment property then it is fraud regardless.
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