Risks of qualifying for mortgages on behalf of someone else?

[Cindy Shen]

I know it's not too big of a problem in US as you can keep buying houses as long as you can get the downplay cash, but in Canada with the super tight qualification it's very hard to qualify for mortgages now, especially as a full time real estate investor without showing any income on paper with only cash for downpay. I have lots of investors whom have the same problems as me. So finally I solved this problem last week and have been on a buying spree, but I have also heard that people would pay for someone to qualify for mortgages on their behalf so they supply the cash for downpay and (for example) I can just qualify for mortgages and in return hold the property under my name and get paid for it. Has anyone heard of this setup? risks? it almost seems to good to be true...

[Roy N.]

Residential mortgage qualification requirements are just shifting back to where they were before all the loosing in the first decade of the century. 

If you move your attention to commercial financing, the rules are different and the deal stands on its own merits.