Personal Finance

HELOC and Another Mortgage Effect

  • Last Updated:
  • May 17th, 2018 2:01 pm
[OP]
Newbie
Jul 28, 2012
95 posts
9 upvotes

HELOC and Another Mortgage Effect

Was hoping I might be able to get some insight from some of the more knowledgeable people in this forum with respect to mortgages and HELOCs

My brother and I have a property together which is where we both live. There is about a $300k mortgage outstanding on a $700k property. We have a HELOC on this property that has not been used.

My brother is now looking to move out and buy a property with his soon to be wife. 1) Would having a HELOC effect the amount of a mortgage he'd be able to get?

He makes around 70k with no other debts. His spouse makes $60k with no other debts. 2) Any idea what amount they could qualify for in terms of a mortgage?
2 replies
Deal Addict
Nov 22, 2015
2908 posts
1691 upvotes
aspen300 wrote:
May 17th, 2018 1:31 pm
Was hoping I might be able to get some insight from some of the more knowledgeable people in this forum with respect to mortgages and HELOCs

My brother and I have a property together which is where we both live. There is about a $300k mortgage outstanding on a $700k property. We have a HELOC on this property that has not been used.

My brother is now looking to move out and buy a property with his soon to be wife. 1) Would having a HELOC effect the amount of a mortgage he'd be able to get?

He makes around 70k with no other debts. His spouse makes $60k with no other debts. 2) Any idea what amount they could qualify for in terms of a mortgage?
Some basic napkin calculations gives me roughly $450000 as a maximum mortgage amount, based on the details you've provided, assuming they are truly debt free (no car or other loan payments of any kind).

Doesn't really matter if it's a HELOC vs. mortgage... the total amount owing is what's used in TDSR calculations.
[OP]
Newbie
Jul 28, 2012
95 posts
9 upvotes
superfresh89 wrote:
May 17th, 2018 1:41 pm
Some basic napkin calculations gives me roughly $450000 as a maximum mortgage amount, based on the details you've provided, assuming they are truly debt free (no car or other loan payments of any kind).

Doesn't really matter if it's a HELOC vs. mortgage... the total amount owing is what's used in TDSR calculations.
Great!! Thanks for the info. Really appreciate it = )

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