Getting money from overseas as a FAMILY LOAN

[emily.anderson]

I've been to Canada for about 5 year and one month. Got a job just 2 months ago. My cousin will transfer me money from his account in Middle East to my account here in Canada (around 200k USD) as a "family loan"

I have the following queries:

1- Will this amount be taxable?
Is there any amount limit that I can borrow without being taxed by government?
Is there any time limit I can keep this amount in my account before I use it without being taxed by government?

2- What documentation should I prepare in case If i ever questioned by the CRA?

3- Am I going to be eligible for taking mortgage to buy a house and pay the downpayment from the money I got?

Thanks for the response

 

[steaky]

This is almost impossible for anyone to answer. You have not provided any document relating to your finance such as tax returns for anyone to consider whether yo are eligible for getting a mortgage. Besides, you would need a mortgage broker or specialist for that.

 

[torontosm]

1- Will this amount be taxable?
Is there any amount limit that I can borrow without being taxed by government?
Is there any time limit I can keep this amount in my account before I use it without being taxed by government?

2- What documentation should I prepare in case If i ever questioned by the CRA?

3- Am I going to be eligible for taking mortgage to buy a house and pay the downpayment from the money I got?

1. No, these funds are not taxable. There is no limit, but naturally, if the amounts get large enough, they may be scrutinized further by the CRA or by other government authorities. There are also no time limits.
2. Prepare a simple loan agreement. If you want to be extra safe, put in an interest rate and pay interest on the loan regularly.
3. You can use the funds as a downpayment; however, for mortgage eligibility, more information is required.