As of October 22, 2026, OLG says a $40 million LOTTO MAX ticket sold in Grey County remains unclaimed and expires October 28, 2026. Read OLG’s October 22 update.
If the rightful ticket holder claims the prize, how could that money affect a mortgage application?
Yes, lottery winnings can help you buy a home in Canada. Once received and documented, they may be used for a down payment. But a lottery prize is not automatically qualifying mortgage income. A lender will still review your ability to repay the mortgage—or assess whether you qualify through a suitable asset-based lending program.
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Lottery Winnings as Down Payment
Yes, lottery winnings can potentially become part or all of the money you use toward a home purchase once the prize has actually been received and properly documented. That can make an enormous difference.
The federal government explains that the size of your down payment determines how much of the purchase price needs to be financed. A borrower putting less than 20% down will also normally require mortgage default insurance.
So someone who suddenly has $200,000, $500,000 or $1 million available can reduce the size of the mortgage dramatically. This also changes the property’s loan-to-value ratio because the more money you put down, the less the lender has to advance against the property.
Example: You buy a $750,000 home and put $250,000 of verified lottery winnings toward the down payment. You would need a $500,000 mortgage before closing costs, making your loan-to-value ratio about 67%. The lender would still assess your income, debts, credit and, where applicable, eligible assets to decide whether that $500,000 mortgage is affordable.
Are Lottery Winnings Mortgage Income?
Winning $500,000 does not mean the lender treats you as earning $500,000 a year. The CRA generally treats Canadian lottery winnings as non-taxable, but that tax treatment is separate from mortgage qualification. CRA lists lottery winnings as generally non-taxable; investment income earned on those winnings may be taxable, depending on the type of investment and account.
Mortgage lenders are trying to determine whether you can continue making the mortgage payments. OSFI’s residential mortgage underwriting guideline requires federally regulated lenders to verify income and assess its sustainability. A lottery jackpot is a one-time asset event, not ongoing employment income.
The mortgage issue is not simply whether the money is taxable; the lender wants to know how the mortgage will be repaid every month. That is why income matters so much in the mortgage process, as explained in my article on salary versus house price.
Can Lottery Winnings Help You Qualify?
Some lenders have high-net-worth or asset-based mortgage programs designed for people who have substantial liquid assets but do not fit ordinary income-based mortgage qualification. These programs vary by lender, but a common approach is to require strong credit, a sufficiently high amount of verifiable liquid assets and a meaningful down payment, then use those assets to support borrowing beyond what income alone would allow.
Current published lender examples show how different these programs can be. Equitable Bank’s TotalWORTH program describes up to 80% LTV where qualifying liquid assets equal 25% of the mortgage amount, or up to 65% LTV where liquid assets equal 50% of the mortgage amount. CMLS Aveo uses eligible liquid assets as part of an asset-income calculation. These are examples, not universal rules; program criteria and pricing can change.
Lenders will still assess the complete application, including credit, debts, down payment, property, LTV, liquidity, reported income, and the source and history of the assets.
Document Where the Money Came From
Imagine your bank statements normally show a few thousand dollars and suddenly there is a $500,000 deposit. Expect questions. Lenders commonly request recent bank or investment statements to confirm that borrowers actually have their down payment and closing funds.
In the case of lottery winnings, the borrower should expect to document the prize and the movement of the funds into their account. A legitimate lottery prize has an identifiable source, and OLG conducts a review process before determining the rightful owner of a winning ticket.
Documents to have ready:
- Official lottery claim or prize-confirmation documents.
- Payment confirmation and a bank statement showing the prize deposit.
- Statements tracing any transfers into the account used for your down payment.
- Separate evidence of your income and existing debts if you are applying for a mortgage.
The exact requirements depend on the lender. Ontario’s mortgage regulator describes how lenders document the source of a down payment.
Does the Stress Test Still Apply?
For a mortgage from a federally regulated bank, a large down payment does not remove the need to qualify under the applicable mortgage stress test. Other lenders may use different underwriting criteria. My article on how mortgage stress tests work explains how lenders assess whether borrowers can handle payments at a higher qualifying rate.
The smaller the mortgage becomes, the easier the qualifying payment may be. Lottery winnings can therefore have a significant impact even if the prize itself is not treated as ongoing income. If the winnings allow the buyer to put at least 20% down, the borrower also moves away from how high-ratio mortgages work. Those mortgages normally apply when the down payment is below 20%.
Why Not Buy the House Outright?
Even if the winnings are large enough to buy a home entirely in cash, the choice is not automatically obvious. Paying cash avoids mortgage interest and qualification, while using a mortgage preserves liquidity for other goals. Whether leverage makes sense depends on the mortgage rate, taxes, investment risk, time horizon and your overall financial plan. That investment decision is separate from mortgage qualification and may warrant advice from an appropriately licensed financial professional.
Credit still matters. A weak credit history can reduce lender choice, increase pricing or prevent approval under a particular program, even when the borrower has substantial assets. See how credit score affects mortgage qualification.
Leverage can be helpful. When it is used carefully, the amount of debt still needs to make sense relative to your ongoing income, your monthly obligations and your high-net-worth liquid assets.
Common Lottery and Mortgage Questions
Can You Buy a House With Lottery Winnings in Canada?
Yes. You can use your received lottery winnings to purchase a home outright or as a down payment, subject to documenting the money and meeting the usual legal requirements of a purchase. If you need a mortgage for the balance, winning the prize does not guarantee that a lender will approve you.
Do Lottery Winnings Count as Income for a Mortgage?
Not ordinarily as recurring employment income. A one-time prize is an asset rather than a reliable monthly paycheque. Some lenders have programs that give weight to substantial verified liquid assets, but they have their own requirements for credit, equity, liquidity and repayment.
Can You Get a Mortgage Without a Job After Winning the Lottery?
Possibly, but not automatically. A substantial down payment reduces the loan needed, and some high-net-worth lending programs may consider verified eligible assets. Each lender assesses the entire application. Depending on the situation, buying outright or borrowing less could be simpler than applying for a large mortgage.
The Practical Takeaway
The person holding Ontario’s unclaimed $40 million ticket could buy a home without a mortgage if the prize is claimed and the funds are available. But the same principles matter for someone winning $50,000, $100,000 or $500,000.
A lottery win can increase your down payment and lower your mortgage amount. It can also reduce your LTV and potentially open the door to lenders or programs that look more closely at your overall net worth.
Remember, lottery winnings can also help you refinance your mortgage, not just purchase a new house.
A lottery win might also help you pay down or consolidate existing debt, which could improve your monthly cash flow before you take on a new mortgage.
The bottom line: Lottery winnings may be excellent down-payment funds, but they do not automatically qualify you for a mortgage. A lender may still decline the application if your income, credit, debts or eligible assets do not meet its requirements.
