• Last Updated:
  • Apr 5th, 2021 12:54 pm
Tags:
[OP]
Newbie
Oct 6, 2017
49 posts
23 upvotes

Any issue?

Hey guys,
Due to personal circumstances, can you rent out principal residence 1 month after purchasing it? I will be renting myself somewhere else and do not have any other principal residence.
7 replies
Deal Guru
User avatar
Mar 23, 2008
12098 posts
8409 upvotes
Edmonton
rfd911 wrote: Hey guys,
Due to personal circumstances, can you rent out principal residence 1 month after purchasing it? I will be renting myself somewhere else and do not have any other principal residence.
As long as you can document your original intention and why you changed your mind, and haven’t done it multiple times already, you SHOULD be ok. Worse case scenario is getting hit with capital gains tax when you sell, but it’s no different than selling any other rental property.

C
[OP]
Newbie
Oct 6, 2017
49 posts
23 upvotes
CNeufeld wrote: As long as you can document your original intention and why you changed your mind, and haven’t done it multiple times already, you SHOULD be ok. Worse case scenario is getting hit with capital gains tax when you sell, but it’s no different than selling any other rental property.

C
No, I have never done it before and I'm not worried about capital gain. Do I need to let my insurance company and mortgage lender know?
Deal Guru
Feb 29, 2008
14236 posts
10531 upvotes
CNeufeld wrote: As long as you can document your original intention and why you changed your mind, and haven’t done it multiple times already, you SHOULD be ok. Worse case scenario is getting hit with capital gains tax when you sell, but it’s no different than selling any other rental property.

C
Yea make sure you can document that you never intended to do this. Keep all mail especially from utilities companies that you received when you were staying at the primary home. The insurance is different with a rental. You get insurance but also have the tenant get tenant insurance. You can speak to your insurance company about the situation and they’ll instruct you in what to go with.

About capital gain you have to prove the value of that unit. Various ways to do that.
Newbie
Dec 1, 2017
29 posts
28 upvotes
rfd911 wrote: No, I have never done it before and I'm not worried about capital gain. Do I need to let my insurance company and mortgage lender know?
I recently got a mortgage with MCAP. My agreement states that if they become aware I’m renting the property within 12 months of purchase the can demand full payment.
[OP]
Newbie
Oct 6, 2017
49 posts
23 upvotes
Booyayyc wrote: I recently got a mortgage with MCAP. My agreement states that if they become aware I’m renting the property within 12 months of purchase the can demand full payment.
Oh really...I will check my agreement. It's with RMG which is part of MCAP.
[OP]
Newbie
Oct 6, 2017
49 posts
23 upvotes
I checked the agreement and there was nothing about 12 months. It just says that I will have to get their written approval before renting it out.
Newbie
Nov 24, 2019
78 posts
53 upvotes
Sometimes the rate you get your mortgage at is based on you using it as a primary residence vs a rental so you might have that problem come up too.

Top