Personal Finance

HELOC and Another Mortgage Effect

  • Last Updated:
  • May 25th, 2018 3:07 pm
[OP]
Jr. Member
Jul 28, 2012
111 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?
3 replies
Deal Addict
Nov 22, 2015
3176 posts
2018 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]
Jr. Member
Jul 28, 2012
111 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 = )
Newbie
Mar 12, 2008
26 posts
4 upvotes
Toronto/Markham
Getting approved for a new mortgage will be difficult as there is already the joint one he has with you for $300k.

As far as lenders are concerned he is liable for that entire MTG doesn't matter if it's joint with you. And with the new stress test rules for qualifications it will be very unlikely he would get approved.

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