The client
A homeowner in Riviere-du-Loup was selling a $340,000 property -- clearing a $210,000 first mortgage and a $47,000 matured private hypothec -- while simultaneously buying a $365,000 new home.
Sale price (property being sold)
$340,000, Riviere-du-Loup
First mortgage balance
$210,000
Private hypothec balance
$47,000
Matured -- required payout at the sale
New purchase price
$365,000
20% down, closing the same week
The problem
A simultaneous sale and purchase means two closings, two sets of trust obligations, and in Quebec, two different regulators involved in the money itself. The courtier hypothecaire arranging the new mortgage is regulated by the AMF -- but the deposit on the new purchase is regulated separately, under OACIQ, Quebec's real estate broker regulator.
Two custodians, two confirmations
- ▸The new purchase's $73,000 deposit sat in the selling brokerage's own trust account, governed by OACIQ's trust-accounting rules for real estate brokers
- ▸The private hypothec's payout and release, on the sale side, ran through the notary's own quittance process entirely separately
- ▸Neither document -- a bank statement, nor a lawyer's letter -- was the right proof of the deposit; only the brokerage's own OACIQ-format deposit confirmation was
The mortgage broker knew exactly who regulates the hypothec. Confirming the deposit meant going to a different regulator's rules entirely.
The numbers
Once both trust accounts were tracked separately, the sale's net proceeds and the new purchase's own mortgage math were both straightforward.
| One sale, one purchase, two separate closings | Amount |
|---|---|
| Net proceeds from the sale | $83,000 |
| Down payment on the new purchase (20%) | $73,000 |
| New mortgage | $292,000 |
| Total debt service | Figure |
|---|---|
| Payment at the qualifying rate (7.05%), 25 years | $2,054/mo |
| Property tax | $310/mo |
| Heat (lender estimate) | $120/mo |
| Total debt service (housing + $240 car loan) ÷ $8,200 income | 33.2% |
33.2% leaves comfortable room on a conventional purchase, with $10,000 of the sale's net proceeds left over once the deposit was accounted for -- the arithmetic was never the hard part of this file.
The solution
A courtier hypothecaire licensed under Quebec's Act respecting the distribution of financial products and services treated the deposit and the hypothec payout as two separate money trails, each needing its own confirmation from its own regulator's process.
First, requested the selling brokerage's own OACIQ-format deposit-receipt confirmation directly, rather than relying on the buyers' bank statement showing the funds simply leaving their account.
Second, worked with the notary in parallel to finalize the private hypothec's own quittance on the sale side, confirmed against the lender's payout figure independently of the purchase-side deposit question.
Third, reconciled both confirmations before either closing was allowed to register, so neither transaction depended on an assumption about the other.
The outcome
Both transactions closed on schedule -- the sale discharged the private hypothec in full, and the new purchase funded at 5.05%, with total debt service of 33.2%.
Because this is a conventional, uninsured purchase at 20% down, CMHC's ratio maximums do not apply directly; the 33.2% figure is informational.
What to take from this file
- 01A real estate deposit and a private hypothec's payout are governed by different rules in Quebec. OACIQ regulates the brokerage holding a purchase deposit; the AMF regulates the courtier hypothecaire arranging the mortgage -- know which one to go to for which document.
- 02A bank statement showing money leaving an account is not proof it reached a protected trust account. The brokerage's own OACIQ-format deposit confirmation is the document that actually proves it.
- 03A simultaneous sale and purchase is two closings, not one. Track each money trail -- the deposit and the hypothec payout -- to its own custodian and its own confirmation, rather than assuming one closing's paperwork covers both.
- 04Reconcile both sides before either registers. Confirming the deposit and the quittance independently, ahead of time, is what let both closings proceed on the same day without either one depending on the other going first.
Sources
Every regulatory figure in this file traces to one of these primary sources. Client details and anything that varies by lender are illustrative, as flagged below.
- ▸OSFI — Minimum qualifying rate for uninsured mortgages — the minimum qualifying rate — greater of contract rate + 2% or 5.25%.
- ▸Provincial/territorial mortgage-broker legislation fetched directly (bclaws.gov.bc.ca, legisquebec.gouv.qc.ca, fcaa.gov.sk.ca, web2.gov.mb.ca, nslegislature.ca, assembly.nl.ca) plus FCNB's own site for NB and CanLII's index for PE — see notes for per-province method — provincial mortgage regulators and licence titles.
- ▸Gouvernement du Québec — Droits sur les mutations immobilières — Quebec's transfer duties ('welcome tax') — 2026 indexed brackets.
Illustrative in this file — lender-specific, not rules:
- ▸5.05% contract rate — rates move daily; not a quote.
- ▸the TDS figure — this is a conventional, uninsured purchase at 20% down -- there is no CMHC ratio ceiling; the number is informational.
Authority & provenance
How this case file was built
We publish the origin, the verification method and the reviewer for every case file, so you can judge how far to trust it before you rely on it with a client.
Where it comes from
Derived from files handled by Treadstone’s fulfillment desk and from scenarios contributed by partner brokerages. Names, employers, exact amounts and dates are changed so no client or file is identifiable.
Provenance: Composite — a pattern seen repeatedly on fulfilled files, not a single transaction.
What is verified
Every regulatory figure traces to a primary source listed above and was checked against it on the date shown. The arithmetic is recomputed by machine on every rebuild.
Anything that varies by lender is labelled illustrative rather than stated as a rule.
Who reviewed it
Reviewed for Canadian regulatory accuracy before publication, and re-checked whenever a cited rule changes.
Reviewed by: Nicholas Parson, Treadstone Associates — reviews every case file before publication.
This case file is professional reference material for licensed mortgage professionals. It is not advice to a borrower, and it is not a lender commitment. Insurer rules, qualifying rates and provincial taxes change — confirm the current position with the insurer, regulator or lender before you rely on any figure here in a live file.