All Forum Posts by: Julie Toh

@Yumiko A. Congrats on the new venture. WA state is my neighbour down south and a fave place of ours to vacay. A source of down payment funds is an unsecured line of credit from a financial institution. Check with you bank. A co-signer is another source.

@Michael Mehta Welcome to the world of real estate investment. There's no better time to invest in RE.

I will respond to your questions that are mortgage related as this is my area of expertise. 

#2 Per CRA, you can deduct the interest charge on money you borrow to buy or improve your rental property.

#1 & #4 Per lending guidelines, the source of down payment for a rental can be borrowed from loc, relatives, etc. This debt will impact your borrowing power. On the other hand, the down payment for a primary home must be from your own resources (own savings, heloc), can be gifted but not borrowed. This is 'A' lending guidelines. Do you buy a rental or primary home as your first property? It'd depend on your long-term REI plans, income, liabilities, etc.. I recommend you consult with a mortgage broker who can structure a mortgage that is right for your situation.

@Travis Showalter Welcome to BP. You will find a ton of info on BP forum, podcasts, & webinars. It wouldn't hurt to connect with some experts on this site. I'm in Vancouver and my area of expertise is in commercial and residential financing. I'd also recommend you start by reading a few Don Campbell's books on real estate investing to grow your knowledge. All the best.

@Stephanie Blouin Your partner, even though a Canadian citizen, is considered a 'non-resident' per mortgage guidelines. Your bank requires 35% down, I usually structure such mortgages with a lender that requires 20% down. If s/he works and lives in the UK but file taxes in Canada, that's a different story. Have a wonderful Thanksgiving!

@Sriram Kumar Bikkina Welcome to BP, Sriram. I echo what @Chris Baxter recommended, read books and read this forum. Do a search for keywords on this site when you have a question - don't be surprised to find that others have also asked similar questions.

Note: A multi-family residential property of 4 units and less qualify for a residential mortgage, 5 units and more qualify for a commercial mortgage. All the best.

@Muiz Ashiqali RBC is one of six big banks; one down, five more to go. A bank employee at the branch will always give you a standard response w/o a creative solution. I have structured equity take-out mortgages successfully for clients in a similar situation. The key is the way you package your application but without an understanding of a lender's guidelines, it can be tricky to present your app in the best light. 

@Roy Cleeves Congrats on acquiring the property and the financing insurance. Well done.

CMHC’s turnaround time is approx. 8 weeks for a response, and the whole process takes approx. four (4) months from start to funding.@Tyler Judd I like to over-communicate to my clients that CMHC is documentation heavy, they want all documents upfront before they can issue a Letter of Interest. The burden of documentation aside, CMHC is a great partner, on the whole.

@Charlene Green Congrats on taking the first brave step towards homeownership. Like @Chris Baxter my go-to resource is CMHC every time. Another resource I use is StatCan for Canadian demographics. All the best, Charlene.

@Cory Iannacone Really nice job on the renovations, well done, Cory! In speaking with other owners / investors, we agree that we can attract the right tenants when our properties are safe and well-maintained. Good to be reminded of what the Chinese word for “crisis” means: “danger” and “opportunity", thank you.

@Hardik Solanki Welcome to BP. You and your friend's borrowing power is quite strong based on your combined incomes. You could qualify for a good size loan and/or multiple mortgages for multiple properties, this assumes you don't have car and student loans and other bad debts. In my practice as a mortgage broker, I meet more new buyers without a game plan for financing than those who do. If you want to scale, you need a game plan. I like to encourage my clients to have a 3, 5 year REI plan. YOu might want to read Douglas Gray's books: "Making Money in Real Estate." and "The Canadian Landlord's Guide". Happy bedtime reading.