Leverage Your Homes Equity Today & Watch Your Income Grow!
For all you property owners, what if we were to say you could save on your current monthly mortgage payment AND acquire a cash flow generating asset that provides you with a second stream of income... all without having to grind each day for that down payment?
If you own your home today, there is a good chance that over the last number of yours, your equity has grown substantially. Maybe you have also considered owning a rental property, but you are unsure of how you will afford the cost of purchasing that investment property.
Whether you’re a savvy investor or have no experience outside of owning your one home, you should consider utilizing the equity in your home to maximize potential earnings for your future.
Owning investment properties in addition to a primary home has successfully created generational wealth for many Canadians. It’s the art of leveraging your built-up equity for the benefit of long-term financial growth through appreciation, principal pay down, and monthly cash flow.
Let’s take a deeper dive at the FAQ’s below
- How Much Can I Borrow?
- How Do I Know What My Options Are?
- Do I Need to Acquire A Tenant Before Completion?
- How Much Down Payment Do I Need?
- Why Is the Interest Rate Higher on an Investment Property?
- This process is completed by refinancing your home.
- Many homeowners will refinance their home for a variety of reasons, some of which include saving on interest rates, consolidating high interest debt, completing home renovations, investments, and more.
- Through the process of leveraging your equity, we can show you the strategies to earn additional income through investments without having to use your savings.
- Ultimately, it comes down to a numbers game, as we aim to maintain or improve your current mortgage payment and set you up in an investment that helps you grow your net worth over time.
- The first step is to give us a call or click the “Apply Now” button to get started & one of our real estate professionals will reach out with everything you need to know.
- It’s easier than it sounds. First, we need to establish how much equity you have in your home by assessing your homes current market value and factoring in any debts like your mortgage and any consumer debt that you may want to consolidate.
- We’ll arrange for an appraiser to advise on what’s called an ‘economic rent’. This report is an estimation of rental income that you can expect your property to rent out for.
- It’s that easy!
- Now there are THREE ways to look at this.
- Are you looking to purchase your next property as the rental property? Or
- Are you looking to purchase your next property that has a rental component in which you will occupy one unit yourself? Or
- Are you looking to turn your current home into the rental property and purchase your next property as an owner-occupied home?
- If you are buying a property for the purpose of an investment, 20% of the purchase price is required as your minimum down payment.
- If you are planning on moving into the property as your owner-occupied home, you will require the minimum 5% down on the first $500,000 & 10% on the next $500,000, up to $1,000,000.
- It all comes down to risk exposure from the lens of a lender.
- One key factor that lenders consider includes the possibility that you might one day have to cover part of or the entire monthly mortgage payment given a vacancy occurs.
- Lenders also factor in the general wear and tear of a tenant occupying a home. From a lender’s perspective, they also consider the priority a borrower may place on their primary homes mortgage payment over the rental property’s mortgage payment if you were to get sick, lose a job, or go through a financially challenging time.
- Depending on the lender, a typical increase in rate for a rental property will be between 0.10% and 0.25%.
- While this premium may not be attractive, simply increasing your 25-year amortization to 30-year can result in lower monthly payments and positive cash flow.