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Old 12-17-2014, 03:01 PM   #2
Mortgage Made Easy
Crash and Bang Winger
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Join Date: Sep 2014
Location: Calgary, AB

Originally Posted by CaramonLS View Post

Can I qualify for a bigger mortgage based on potential rental incomes?
How does a down payment work in this situation? Am I expected to put down the same % as I would as if I was a first time buyer?
I currently have a HELOC, can I used that for a down payment on a new place?

Just wanting to examine my options before I give up on a potentially decent income property.
Thank you for the question CaramonLS... we get this question quite a bit since CMHC made guideline changes earlier this year (May). I will put a quick post here and then PM with more details.

Yes you can use rental income for qualifying. Some lenders use less rental income than others so this is very important in qualifying depending on your overall financial situation (income vs. liability).

For down payment, currently the minimum down payment for an OWNER OCCUPIED property is 5%... again it comes back to the overall financial situation and in some cases, lenders may want more.

Yes, you can currently use your HELOC for the down payment. NOTE: There are some new guidelines for 2015 that all Banks/ Lenders will be using to qualify HELOC's...

Ultimately, there are a few strategies to consider to make sure that you minimize your risk as a landlord and to ensure you can qualify for 2 properties.
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