Buying a Second Home
Are you running out of room in your house? Or perhaps there just is too much room that’s unused? It may be time to upsize or downsize your home.
Every family’s situation is very different. Navigating through your options and different scenarios can create a clearer plan. Working with The Mortgage Minds will give you confidence and a plan that will cover the worst case scenario to the best case scenario. Let’s navigate all the possibilities together.
Purchase your next home and keep your existing home
Buyers will need to qualify to carry both properties. With your mortgage application, we would qualify you to carry your existing and your new monthly debt obligations. These include your housing costs such as your mortgage payment, heat and tax as well as the new housing costs. Condo fees would also be applied if applicable.
If the existing home is being rented, we will accept a lease agreement to show income. Or order a market rent report to confirm how much your Edmonton home could be rented for each month. This can help qualify you to carry mortgages on both properties.
Keep in mind that in this scenario, you will be required to come up with your own savings or a standard down payment will be required.
Buy First, Sell Later
You have been looking online, and you may have found the perfect home to purchase! But you have not yet sold your house. In this case, speak to your real estate agent. Perhaps you can make an offer with a condition of selling your home in a specific time frame. We could also talk about adding a possible consignor on the new purchase.
Your down payment on the new home will be a driving factor. If it is tied up in the existing house and you have to sell that property in order to extract the equity for a down payment on the new home, you must sell the current house first OR make an offer with a condition to sell your home.
If you qualify to carry both properties and are able to come up with the down payment for the new purchase, the funds can come from alternative savings or other sources. Then it would be possible to purchase that new property without the sale of the existing one.
Considering a second home as an investment?