Real Estate

What Options Are There? Upsizing Homes

  • Last Updated:
  • Sep 25th, 2018 12:54 pm
[OP]
Jr. Member
May 24, 2012
115 posts
20 upvotes
Toronto

What Options Are There? Upsizing Homes

Scenario, asking for a friend.

"We have a paid off mortgage on a 850k property, we have 350k in cash savings, we want to move into a bigger home since family is expanding (Roughly a $1.3mil home).

Is there any way to purchase a $1.3million home while keeping our original property? What options do we have? Is there a way to leverage our assets? Lets say 260k Gross Household income."

Thanks!
5 replies
Deal Fanatic
User avatar
Jun 26, 2005
8772 posts
987 upvotes
Toronto
Sounds like they can

Go to get a quote for mortgage and put 20-30% down

Or, another option is to sell their house, then buy 2 or 3 condo units to rent out. Downtown Toronto, midtown, uptown

Condos are easier to take care of to rent out and the way future is going, demand of Toronto downtown rental is going to the moon and beyond.

You heard that sooo many tech companies are opening up in the next few years downtown. Jobs Jobs Jobs.
Deal Addict
Mar 14, 2006
1000 posts
449 upvotes
Toronto
Take out another mortgage...Looks like you already have the down payment available
Sr. Member
Dec 4, 2016
884 posts
316 upvotes
weirdlogic wrote:
Sep 24th, 2018 8:45 pm
Scenario, asking for a friend.

"We have a paid off mortgage on a 850k property, we have 350k in cash savings, we want to move into a bigger home since family is expanding (Roughly a $1.3mil home).

Is there any way to purchase a $1.3million home while keeping our original property? What options do we have? Is there a way to leverage our assets? Lets say 260k Gross Household income."

Thanks!
If you take out a mortgage to buy the new primary residence, will you be able to deduct interest against rent collected on the former primary residence, (now the rental)? If I remember correctly, CRA will not see the mortgage against the old home as a business expense, as the intent of the mortgage was not to buy a rental.
Deal Fanatic
User avatar
Dec 27, 2009
5529 posts
2784 upvotes
Ottawa, ON
I'm finding it pretty hard to really give a shit about these people's "problem" lol. Flame me if you want:)
Deal Fanatic
User avatar
Feb 2, 2014
5537 posts
1184 upvotes
Toronto
weirdlogic wrote:
Sep 24th, 2018 8:45 pm
Scenario, asking for a friend.

"We have a paid off mortgage on a 850k property, we have 350k in cash savings, we want to move into a bigger home since family is expanding (Roughly a $1.3mil home).

Is there any way to purchase a $1.3million home while keeping our original property? What options do we have? Is there a way to leverage our assets? Lets say 260k Gross Household income."

Thanks!
Why doesn't your friend just talk to a bank or broker to get pre-approved for another mortgage? It's that simple.

If he can qualify, then yes, he can get another mortgage.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative

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