Personal line of credit #ASKBP

[Igor Tomic]

Hi all. I'm wondering what you guys think about using personal line of credit to put downpayment on my next rental. Does it make sense to use cashflow from the property to pay off credit? #ASKBP

[Thomas Lorini]

Hi Igor;

I invest in Ontario and have done what you are considering. Basically the bank will quaoify you for the mortgage, you will need to show proof of funds...but cannot be the actual LOC. Once you are approved and they are working towards closing the actual funds can come from wherever you decide....hence you can use your LOC and not touch your savings...

Thomas