03-09-2010, 08:58 AM
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#1
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Franchise Player
Join Date: Jun 2003
Location: N/A
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Options for Home Downpayment?
So My fiance and I want to buy a second home but apparently CMHC wont approve the deal unless 10% is put down which in this case is $30,000. Now I don't have $30,000 lying around but we can easily afford the home.
What are my options here?
I only have a LRSP account and am pretty sure I can't touch that.
Thoughts?
Last edited by MJK; 03-09-2010 at 09:11 AM.
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03-09-2010, 09:00 AM
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#2
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Franchise Player
Join Date: Aug 2005
Location: Calgary
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Second mortgage on current house for 30K?
__________________
MYK - Supports Arizona to democtratically pass laws for the state of Arizona
Rudy was the only hope in 08
2011 Election: Cons 40% - Nanos 38% Ekos 34%
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03-09-2010, 09:01 AM
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#3
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Franchise Player
Join Date: Jun 2004
Location: Calgary
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cmhc fees aren't paid up front, yet i wouldn't recommend it anyways 
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03-09-2010, 09:03 AM
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#4
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Franchise Player
Join Date: Jun 2003
Location: N/A
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Quote:
Originally Posted by mykalberta
Second mortgage on current house for 30K?
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We only bought the first place last summer so we only have about $10,000 paid off of it.
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03-09-2010, 09:09 AM
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#5
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Did you talk to your bank? You have basically no equity, they might not let you sell anyhow.
__________________
If you don't pass this sig to ten of your friends, you will become an Oilers fan.
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03-09-2010, 09:10 AM
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#6
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Franchise Player
Join Date: Aug 2005
Location: Calgary
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Then why not just put your extra cash into paying off your mortgage or investing it in something other than a house?
__________________
MYK - Supports Arizona to democtratically pass laws for the state of Arizona
Rudy was the only hope in 08
2011 Election: Cons 40% - Nanos 38% Ekos 34%
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03-09-2010, 09:13 AM
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#7
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Franchise Player
Join Date: Jun 2003
Location: N/A
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Quote:
Originally Posted by Shazam
Did you talk to your bank? You have basically no equity, they might not let you sell anyhow.
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I don't want to sell the one we have now, I want another place. I will rent one of them out.
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03-09-2010, 09:15 AM
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#8
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Franchise Player
Join Date: Aug 2005
Location: Calgary
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1-800-Parents ?
__________________
MYK - Supports Arizona to democtratically pass laws for the state of Arizona
Rudy was the only hope in 08
2011 Election: Cons 40% - Nanos 38% Ekos 34%
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03-09-2010, 09:17 AM
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#9
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Quote:
Originally Posted by MJK
I don't want to sell the one we have now, I want another place. I will rent one of them out.
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I thought the new DP had to be 20%.
__________________
If you don't pass this sig to ten of your friends, you will become an Oilers fan.
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03-09-2010, 09:18 AM
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#10
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Franchise Player
Join Date: Jun 2003
Location: N/A
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Quote:
Originally Posted by mykalberta
1-800-Parents ?
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LOL, ya I have thought about that. Can they give me money using a credit line? I know I cant use one for the purpose of a downpayment.
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03-09-2010, 09:22 AM
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#11
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evil of fart
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Hmmmm, I don't like the sound of this. I hope you know what you're doing.
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The Following 7 Users Say Thank You to Sliver For This Useful Post:
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03-09-2010, 09:22 AM
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#12
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Powerplay Quarterback
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Quote:
Originally Posted by MJK
LOL, ya I have thought about that. Can they give me money using a credit line? I know I cant use one for the purpose of a downpayment.
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For a downpayment on a rental, im pretty sure you are not allowed to use "gifted" money. The money has to be in your account for at least 60 days to not be considered as such.
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03-09-2010, 09:24 AM
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#13
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Franchise Player
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Nope. Even if the downpayment is 'gifted' to you, I'm pretty sure they have to provide proof that it's not borrowed. Not sure if you can use gifted money on a second property though.
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03-09-2010, 09:26 AM
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#14
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#1 Goaltender
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I think you basically have two options.
Left nut or right nut.
__________________
Quote:
Originally Posted by Biff
If the NHL ever needs an enema, Edmonton is where they'll insert it.
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03-09-2010, 09:28 AM
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#15
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#1 Goaltender
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Quote:
Originally Posted by Sliver
Hmmmm, I don't like the sound of this. I hope you know what you're doing.
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Yeah. I know you can "afford it" but I am presuming that is because of your income situation.
What if you lose your income source? What does your debt load look like if you've got to carry two mortgages for 3 months while you find new work?
Are you going to be using this second place as a revenue property?
__________________
Quote:
Originally Posted by Biff
If the NHL ever needs an enema, Edmonton is where they'll insert it.
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03-09-2010, 09:29 AM
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#16
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Aren't vacancy rates pretty high right now? I know my BIL is having a hell of a time trying to get a renter.
__________________
If you don't pass this sig to ten of your friends, you will become an Oilers fan.
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03-09-2010, 09:33 AM
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#17
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#1 Goaltender
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Just say you are moving into the new place and renting out the old and then you only have to pay 5 percent! And make sure you buy before april 19 or what ever the date is or you have to pay 20 percent on the rental instead of 10
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03-09-2010, 09:36 AM
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#18
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Crash and Bang Winger
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Terrible time to find renters right now.
The only way I can see you do this is..
1. Find a home you want to buy.
2. Have someone you know buy it + get the mortgage.
3. Have someone move in there and sign a lease.
4. Go to the bank with the house owner and tell them you want to assume their mortgage and show them a copy of the signed lease. (if they see an already signed lease, they will count that as part of your income and will feel safer giving you a 2nd mortgage).
5. If mortgage approval goes through, change title to your name through a lawyer.
But yeah, talk to your bank and see what they say first.
Your other option is to ignore CMHC, and just pay their "fine" on top of your mortgage. I'm guessing this is allowed also.
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03-09-2010, 09:36 AM
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#19
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Franchise Player
Join Date: Mar 2002
Location: Auckland, NZ
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Borrow against the house value of someone you know (ie. parents, friends) that have no or little mortgage. They will acquire the amount as a line of credit against their current property, they sign a check over to you, and you simply pay them back, with whatever arrangement you guys decide on. This usualyl results in lower interest because it's a line of credit as opposed to a mortgage. This is how I acquired my first property, it could probably work for you. Just make sure you trust the people you are borrowing this from, and they are stable where they are.
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03-09-2010, 09:37 AM
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#20
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Powerplay Quarterback
Join Date: Mar 2006
Location: Victoria
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Quote:
Originally Posted by SeeGeeWhy
What if you lose your income source? What does your debt load look like if you've got to carry two mortgages for 3 months while you find new work?
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What if the above is happening while at the same time the housing market is crashing like a mother  ?
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