Downsizing Mortgage Question
Hey guys,
Just wanted to pick some of your brains here.. Here's the scenario my parents could be facing next year and had a couple of questions about obtaining a mortgage on an investment property.
- Both parents are retired/unemployed = no income other than OAS/Pension
- Current/Primary house is paid off and valued around 1 Million
The kids are out of the house and looking to downsize to a condo, they'd like to have a piece of investment property to generate equity at the same time. If my parents were to buy a condo around 600K as their primary residence and purchase another condo with a 20% downpayment as a rental property, would the bank loan the remainder 80%?
The goal of this is to free up some equity and have cash in pocket.
Thanks
Just wanted to pick some of your brains here.. Here's the scenario my parents could be facing next year and had a couple of questions about obtaining a mortgage on an investment property.
- Both parents are retired/unemployed = no income other than OAS/Pension
- Current/Primary house is paid off and valued around 1 Million
The kids are out of the house and looking to downsize to a condo, they'd like to have a piece of investment property to generate equity at the same time. If my parents were to buy a condo around 600K as their primary residence and purchase another condo with a 20% downpayment as a rental property, would the bank loan the remainder 80%?
The goal of this is to free up some equity and have cash in pocket.
Thanks