Can I buy multiple properties? Friends won't tell me

Ask a mortgage broker. There are few on this forum. But with 60k income you won't be going much far, leave alone requalifying.

Which city are you planning to buy the property for 210K?

JimJas wrote: ↑ Which city are you planning to buy the property for 210K?

This one perhaps?
https://forums.redflagdeals.com/any-rea ... t-2595938/

That's not how it works.

When applying for another mortgage a lender that uses 50% offset will apply 50% of the rent to your income and 100% of your condo expenses to your liabilities.

skeet50 wrote: ↑ That's not how it works.

When applying for another mortgage a lender that uses 50% offset will apply 50% of the rent to your income and 100% of your condo expenses to your liabilities.

Thanks for replying, do you have a guesstimate how much i'd get? Condo monthly is about 400. It would still be about 200k right?

With 60K income, at today's rate, your max qualification is about $260K mortgage. You are already there and no A lender will give you more.

People who buy multiple properties either have wealth, or much higher income than 60K, or both. You seems to do well with saving but need to double or triple your income first before considering multiple properties.

To buy a rental property you need 20% down plus as others mentioned you need to qualify for it. You can play around with the mortgage qualifiers on various websites or if you really want to dig into it, learn how to calculate TDS/GDS ratios. This is pretty simple and is the basis for mortgage qualifications.

One option would be add 50% of the rent you are getting to your income and include the mortgage on your current property in the ratios then move out of that condo and go buy another property with a rental unit. If you buy a duplex you can do it with 5% down and also add some of the rental income back to your income to help with the ratios. Anything more than a duplex (triplex/4plex) would be 10% down but might help more with ratios.

If you have 20% or more down you can also go to alternative lender that allows higher ratios or find a bank that will do a rental offset instead of addback to help with ratios. A good broker who specializes in investment properties would be great help to give you an idea of what is possible. With 60k might be hard but get yourself a partner with another income and that should greatly help.

With a 60K income in the GTA one can't even rent a 1 bdrm condo let alone buying one

Check with a mortgage broker. As for your company RRSP, I believe those would be locked-in rrsp and cannot be used. But you are definitely on the right path to building generational wealth, by saving, building equity, and wash-rinse-repeat. I was in those same shoes two decades ago.

DisneyKruze wrote: ↑ With a 60K income in the GTA one can't even rent a 1 bdrm condo let alone buying one

OP probably drives for Uber though. That's a good way to get a 2 million dollar mortgage easily.

You NEED new friends....

realtorhome wrote: ↑ Check with a mortgage broker. As for your company RRSP, I believe those would be locked-in rrsp and cannot be used. But you are definitely on the right path to building generational wealth, by saving, building equity, and wash-rinse-repeat. I was in those same shoes two decades ago.

Well even if they are not locked in, if he takes them out he will be taxed on them, he already owns a condo so he won't be considered a 1st time buyer so can't get them out through any of the programs.

I think they arent telling you because they’re just trying to be polite.
Its kind of harsh to tell a friend “you don’t have enough money or income…”

I guess a nice way is “maybe save up a bit more and see if you qualify later?”.
Perhaps they said that and it was too subtle. It was something you didn’t want to hear.

North of Mississauga, but South of Caledon. Funding Secured.

LordOfTheManor wrote: ↑ North of Mississauga, but South of Caledon. Funding Secured.

LOL.


OP, what area do you live/want to buy in?

mortgage broker will explain you more details with numbers, and I'm not a mortgage broker (do not rely too much on my opinion, always confirm with broker) but I want to point out few things,

1. bank will offer higher mortgage interest rate for your investment property
2. bank only counts 50% of your rental income
3. you must do 20% or more down to purchase investment property.
4. refinancing your condo is not based on the market value. Bank will appraise the value of your condo, and they would lend (80% of appraised your condo value) - (your mortgage balance).
5. if you're able to refinance, your total debt will be increased as well, so you may not qualify the mortgage.

I also have 100k in company rrsp, can I use that?
you need to double check with company rrsp policy, but generally speaking you can withdraw rrsp anytime but it will be considered as your income. Therefore, you're end up paying more income tax because you're not using your rrps to purchase primary residence property.
i.e.) if you withdraw 100k this year, you're going to pay 160k income tax. (roughly you're going to pay about 40k more for income tax)


How do people buy multiple properties?
there's no magic unless they forge the document and trick bank, they have higher income or positive cash flow from investment properties.

To buy a second rental you will need 20% down minimum and your debt ratios TDS and GDS must be met. Your income of $60000 and existing mortgage of $250000 will limit what you can borrow. You will also need to be qualified and with the higher rates these days you may have trouble meeting the guidelines. You need increased income and/or a lower mortgage amount. Also you have not mentioned if you already own or are renting.