Real Estate

Accessing equity in preconstruction home

  • Last Updated:
  • Aug 10th, 2021 5:07 pm
[OP]
Member
Jun 11, 2013
256 posts
250 upvotes
Toronto

Accessing equity in preconstruction home

So I bought a preconstruction home in ottawa closing early next year and I was thinking of potentially keeping my current place as an investment property. Since I bought the preconstruction home its gone up in value about 200k, is there any ways to access some of this equity immediately upon closing the mortgage or does it factor in at all when qualifying with the banks? Its going to be a bit tight on both qualifying and having some reserve cash on hand in the beginning when trying to keep both places so looking for any possible ways to get access to some equity.
7 replies
Newbie
Apr 9, 2020
92 posts
79 upvotes
You can access equity of your current house and use it to close your preconstruction. Not other way around.
Deal Fanatic
User avatar
Jan 16, 2011
7177 posts
9151 upvotes
The NORTH
Is your current house paid off or are you looking at carrying 2 mortgages at that point?
Deal Addict
Mar 2, 2017
3245 posts
6216 upvotes
Toronto/Markham
crucial1 wrote: So I bought a preconstruction home in ottawa closing early next year and I was thinking of potentially keeping my current place as an investment property. Since I bought the preconstruction home its gone up in value about 200k, is there any ways to access some of this equity immediately upon closing the mortgage or does it factor in at all when qualifying with the banks? Its going to be a bit tight on both qualifying and having some reserve cash on hand in the beginning when trying to keep both places so looking for any possible ways to get access to some equity.
Talk to a mortgage broker, I think BMO has a product that does lending on equity in precon.
RE Broker
[OP]
Member
Jun 11, 2013
256 posts
250 upvotes
Toronto
kr0zet wrote: Is your current house paid off or are you looking at carrying 2 mortgages at that point?
Current house is not payed off. I will probably be able to pull off qualifying but I will be stretching myself pretty thin in the short term and have very little emergency or reserve funds that is my main concern at the moment.
Deal Fanatic
User avatar
Jan 16, 2011
7177 posts
9151 upvotes
The NORTH
crucial1 wrote: Current house is not payed off. I will probably be able to pull off qualifying but I will be stretching myself pretty thin in the short term and have very little emergency or reserve funds that is my main concern at the moment.
Little emergency or reserves are a concern but your ratio's are going to be out of whack carrying a pair of mortgages especially if you are trying to access more equity. As others have said you need to talk too your mortgage specialist to see where you stand.
Jr. Member
Jul 24, 2010
112 posts
84 upvotes
Toronto
crucial1 wrote: So I bought a preconstruction home in ottawa closing early next year and I was thinking of potentially keeping my current place as an investment property. Since I bought the preconstruction home its gone up in value about 200k, is there any ways to access some of this equity immediately upon closing the mortgage or does it factor in at all when qualifying with the banks? Its going to be a bit tight on both qualifying and having some reserve cash on hand in the beginning when trying to keep both places so looking for any possible ways to get access to some equity.
Did not know this was possible, let me know if you can find out a bank/broker that can help with this. Thanks
Deal Addict
User avatar
Apr 12, 2013
2920 posts
1904 upvotes
Moon
watul wrote: Did not know this was possible, let me know if you can find out a bank/broker that can help with this. Thanks
Its mainly B lenders and they will charge you a premium for accessing the equity that quickly for sure.
Koodo, Public Mobile, Lucky Mobile Customer

Top