Can I use cryptocurrency to fund my down payment and will my Ontario lawyer accept it?
You generally cannot pay a down payment directly in cryptocurrency; real estate closings in Ontario move on standard Canadian-dollar funds through trust accounts, so crypto holdings would first need to be converted to conventional currency before your lawyer could put them toward your purchase. Beyond that practical point, using converted crypto proceeds raises source-of-funds questions your lawyer needs to satisfy as part of their professional obligations.
Ontario lawyers are required to understand where client money genuinely comes from as part of client identification and verification rules that apply to their practice, and proceeds from cryptocurrency can require more documentation than a straightforward bank transfer, such as records showing the original purchase, the exchange used, and the path the funds took to a conventional account. If your lawyer cannot get comfortable with that documentation, they may decline to accept the funds for your closing. If you are planning to use crypto proceeds, raise this with your lawyer early, well before closing, so any documentation issues can be resolved without threatening your closing date.
Key takeaways
- Down payments move as conventional funds through trust accounts, so crypto must be converted first.
- Lawyers have obligations to understand the genuine source of client funds before accepting them.
- Crypto proceeds often require more documentation than an ordinary bank transfer.
- Raise this with your lawyer early so any documentation issues don't threaten your closing date.