Chiggs@mac.com
New Member
I have a question for anyone with expertise in financing investment properties...
I purchased a condo downtown in early 2007 for about $560K and put 10% down. At the time I was planning to live in the unit. I have since purchased a house and have no intention of living in the unit. I will most likely keep it and rent it out as an investment property. The same condo is selling today for $700K. I assume that when I close, I will need to put down another 10% which will mean I will have a mortgage of about $450K on a property worth 700K. I assume that I'll be able to open a mortgage similar to the RBC Homeline Plan based on a value of 700K meaning that I would have a 450K closed segment and an available line of credit for another 110K representing the difference between the balance owing and 80% of the value of the property. Does anyone have any experience doing this?
I purchased a condo downtown in early 2007 for about $560K and put 10% down. At the time I was planning to live in the unit. I have since purchased a house and have no intention of living in the unit. I will most likely keep it and rent it out as an investment property. The same condo is selling today for $700K. I assume that when I close, I will need to put down another 10% which will mean I will have a mortgage of about $450K on a property worth 700K. I assume that I'll be able to open a mortgage similar to the RBC Homeline Plan based on a value of 700K meaning that I would have a 450K closed segment and an available line of credit for another 110K representing the difference between the balance owing and 80% of the value of the property. Does anyone have any experience doing this?