Both Disabled, Need Strategic Ideas

[Renato A. isla]

in 2013, we sold our house in Toronto since my wife and I were both on disability benefits and we couldn't afford it anymore. We paid off all our debts, put 100K on 5-year GIC, and got C$80K LOC. We bought a rental duplex in Fort Erie, Ontario using the LOC, spent C$32K on DP and closing costs..and after all expenses, it nets us C$500/month. Two years ago, we tried to purchase a second property but we were denied by the banks, claiming it looked like we could not afford a second property since we were both on permanent disability and our total income was so small. To be honest, we are in deficit monthly and we simply use our credit to get by.

We really would like to buy a second property to augment our meagre income but our LOC is now down to C$20K (from C$80K) and my wife has racked up around C$13K in credit card debts.

Here is the light at the end of the tunnel. On 2018, our C$100K GIC will mature with a projected 25K in earnings. The Fort Erie property I project will give us an equity of around C$70K. Also in 2018, we will both be 65 and would receive a nice pension increase.

Should I attempt to buy a sub-C$100k property and risk lowering my credit rating? Or should I wait until we are above water? Before I contact any mortgage broker, I want to get some ideas from you guys.