Quote:
Originally Posted by Calgary14
Just curious, how common is it for people to own more than 2 properties? I believe you need 20% down if it's not a principal residence
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I find it quite common however many people are not aware as to how easy it is to own 2 places. If you are smart with your money and didnt go buy something for 100% of your approval amount, chances are you are living fairly comfortably.
As for the 20%, if mortgage A is through company A and you want a second property... you only need 20% equity in your current property to move and buy something new with 5% down.
If mortgage A is with company A and your willing to go to another lender, you can have less than 20% equity in your primary residence and buy something new with 5% down.
Both those scenarios involve making the new home your primary residence as you will need 20% regardless if you plan on living in the initial home and buying a second place for investment purposes.
Quote:
Originally Posted by MillerTime GFG
It may cover their actual costs, but when looking to be approved for a new mortgage like you're alluding to, they can't use all of the rent they're charging. Usually a 50-80% offset depending on the lender.
Of course if their income more than satisfies what they're looking for, the above is a moot point. But that offset can be tricky sometimes.
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I know you would already know this but for CP, there is at least 1 A lender who will take 100% of your rental income.
To further comment on the initial post by Calgary14 - moving from owning 2 to 3 places is where it gets very challenging.