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

Click here to add your own comments

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.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.

                  

  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.

  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.


  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.

Click here to get book

This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

  Click here to subscribe