Need help with my first deal-I am Canadian

[Kendra Lacarte]

Hello,

I have been working hard to find a good deal since I joined Bigger Pockets.

I have found, what I think is, a good deal. 

I have been speaking with the owner of a triplex. He wants out badly because he has mismanaged the triplex and has just had to evict all the tenants. He also owns commercial property and wants to focus on that.

He is asking for $165 000. I asked him to hold the 20% down payment as a promissory note. He agreed. I should be able to get a mortgage for the other 80%. 

My question is: when I apply for the mortgage, do I tell the lender that I have the down payment?  Or do I have to tell them that the seller is holding a promissory not? 

This is all so new to me, I am really unclear on the rules and regulations with down payments in Ontario, Canada. Any advice here would be super appreciated!