How to purchase an income property when you renew your mortgage

Monday February 5th, 2018

How to purchase an income property when you renew your mortgage

For years, you have been thinking about investing in an income property. Why not take advantage of your mortgage renewal to refinance your property and to provide you with the 15% or 20% down payment needed for such a project?

Effectively, refinancing when you renew your mortgage gives you access to the entire mortgage market, allowing you to find the best lender, the best rates and conditions that match your situation without any penalties.

Whether it is a duplex, a triplex or a property with 32 apartments, you will have to make a down payment. The value your property has acquired since your purchase may offer the solution.

With the arrival on the market of segmented mortgages, it is easy to divide your current mortgage into a new, segmented one that can be used for investment purposes. Besides choosing the amortization and the term you want for the new loan, you can also separate this transaction for income tax purposes because the interest on the amount of the investment loan is deductible.

If you know someone who has to renew their mortgage in the near future, send them this article. It could help them decide on their approach to their mortgage renewal.  

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