Not sure but i think the ability to bye second homes at less then 20% is there, its just that CMHC will not insure it. To me thats a good thing, the investor should hold the risk, not CMHC and the taxpayer.
That aside, my understanding is that if you have enough equity, you can still obtain a an LOC to purchase the investment property with no down payment, as long as the bank gives you the money. Of course they then have a lean on your property and can foreclose if you cannot make the payments.
Not sure about the "second home", i am pretty sure that Revenue Canada does not recognize that.
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