Down Payment

by Chance
(Windsor, ON)

Good day,

I have a couple of 4-Plex owners who will hold 20% of the mortgage over 10 years. As I don't currently have enough home equity to qualify me to come up with 20%, I am struggling to understand how exactly this will help me qualify.
Any insight into how I can leverage that would be very useful to me.

Thanks.

Comments for Down Payment

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Jan 30, 2015
RE: Down Payment
by: Tom

Thanks for the questions.

Some lenders will allow you to place a "2nd mortgage" on a property as long as they're in 1st position. The trick is that they usually limit how much the second can be.

So for example if they were lending you 80% of the value of the property they very likely would not allow 20% as a 2nd mortgage. That's what most people want though b/c it allows you to buy a property with 0% down.

You may want to find a good mortgage broker and explain what you have and see what options they can provide.

Thanks for the question,

Tom.

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