The Real Estate and Mortgage Show - November 16
Steve, Frank and Paul take all of your real estate and mortgage questions. Is it possible to move into a bigger home while still keeping the old home as an investment property? What about breaking your fixed mortgage rate in favour of a variable? This, and much more, on another episode of Open House.
On this week's episode of Open House - The Real Estate and Mortgage Show, host Steve Gregory is joined by Paul Rushforth and Ottawa Mortgage Broker Frank Napolitano.
One caller this week had some questions about turning her current townhome into a rental property and using the rental income to help finance her new home purchase. Frank had plenty of helpful advice for this caller, along with many other listeners who may be considering the same strategy:
- First, ensure you have budgeted properly for carrying both properties, factoring in the possibility of your rental being unoccupied.
- Take into account the down payment you have available for the second property. If you have 20% available for a down payment, your Mortgage Broker will be able to use the full rental income to qualify you. If not, only 50% of the rental income can be used.
- Remember - if you are planning to refinance your existing property to purchase another, you will only be able to refinance to 80%.
Frank takes some time this week to talk about mortgage rates and the choice to break a fixed rate mortgage in favour of a variable rate. In all cases, taking into account any potential penalties and comparing to interest savings is a good idea before making this decision. Talk to your Ottawa Mortgage Broker for more information.