Considering a B Lender (all details in post) with 2nd purchase

[Brett Nacci]

Hey Guys,

Just joined the community and I'm hoping to get some advice from anyone with expertise in the field :).

I currently own a triplex in Ontario (Niagara Region), with an investment partner. Between the 2 units (of the 3) being rented out, it JUST covers the mortgage, utilities, and property tax. I currently live in the 3rd unit, but am hoping to rent it out the minute I buy a new property. If all goes well, the third unit will rent for 1100-1200 / month- no problem (high population area, so shouldnt have a problem renting it). So my share would be roughly 500-600 in additional income from that property / month. 

I found an amazing property, well priced (inside is completely renovated, but outside needs work). I would live on the main floor, and  rent out the basement. The basement in large, with a separate entrance to it (in law suite). The basement would rent for roughly 800 a month. Even if it was not rented out , my job would put my in a position to make the monthly house payments.     

 Im having a hard time with the second mortgage. I own a roofing & siding business and have only been in business for 1.5 yrs. 2018's income was well, but the year prior was a lot lower, so the big banks ( and A lenders) are making it difficult for me to qualify  for a lending amount over 200k.  I need a lending amount of roughly 320-340k

The question: Would a B lender be able to lend me an additional 120-140K ontop of what an A lender is willing to lend me? 

I understand the difference in interest is 1-2% extra with a B lender which would be ok, not ideal, but ok. 

Let me know what you guys think :), really trying to make this second deal happen ASAP. If I need to wait for another couple months for 2019s T4, t1, etc its no problem also, but I like to jump in first opportunity possible!

Thanks for reading guys :D

[Rick Laszlo]

Nobody  has replied to you for two reasons you are not telling us if you're pulling anything down on the second property you want to buy… You have not said what the purchase price is or what you think the value is under or over the real value ...until you answer those there cannot be a calculation as to whether it can be done… What is the number that the bank is willing to give you, the number you were asking for $120,000 more for...what is your mortgage on the triplex and what is the value of the triplex is my third question… If you answer the three questions we can talk