Real Estate

Confused about interest charges condo

  • Last Updated:
  • Oct 14th, 2019 10:17 pm
[OP]
Newbie
Apr 7, 2019
92 posts
17 upvotes

Confused about interest charges condo

Hi there wanted advice how it works interest wise for a condo.

I purchased last year. Used some of my own money and some of a home equity line of credit.

I am hoping will be able to get approved mortgage for it in 2021. Depending on my situation at time.

Option 1 get mortgage approved and keep condo for few years rented then sell. By then will have paid my debt on heloc so will be better to sell.

Option 2 I dont get mortgage approved and am forced to sell it. I will face penelties for selling early tax wise i know. But how much. Also i owe money on heloc will that be factored in or not. I confused and just want advice.

I bought for 500k 2 bedroom 2 bathroom erin mills. Present market for area same like mine is around 585. I have put 125k down by 2020. Mortgage will be around 475k. As its investment hoping will be easier to get mortgage approved.
3 replies
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User avatar
Jan 2, 2012
4023 posts
1929 upvotes
Toronto
liquidsuite wrote: Hi there wanted advice how it works interest wise for a condo.

I purchased last year. Used some of my own money and some of a home equity line of credit.

I am hoping will be able to get approved mortgage for it in 2021. Depending on my situation at time.

Option 1 get mortgage approved and keep condo for few years rented then sell. By then will have paid my debt on heloc so will be better to sell.

Option 2 I dont get mortgage approved and am forced to sell it. I will face penelties for selling early tax wise i know. But how much. Also i owe money on heloc will that be factored in or not. I confused and just want advice.

I bought for 500k 2 bedroom 2 bathroom erin mills. Present market for area same like mine is around 585. I have put 125k down by 2020. Mortgage will be around 475k. As its investment hoping will be easier to get mortgage approved.
I'm confused by what you are actually asking.

If it will be a rental property and not ever your personal residence, then it doesn't matter if you sell early or after a few years. There are no additional fees from CRA or tax wise.

Your HELOC is irrelevant to when you sell. If you do sell the money you get can go to pay off HELOC.

If you can't even get a mortgage approved, then you'll need to do an assignment sale. You will need to check with the condo builder on if this is allowed and what the rules are.
Sr. Member
Dec 8, 2003
953 posts
50 upvotes
rob444 wrote: I'm confused by what you are actually asking.

If it will be a rental property and not ever your personal residence, then it doesn't matter if you sell early or after a few years. There are no additional fees from CRA or tax wise.
This is not exactly true. With a rental property HST will be charged at close and unless the unit is rented out for 1 year the HST rebate will not be returned by CRA. That will be a hit of $24k.
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Jan 2, 2012
4023 posts
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Toronto
ptxpress wrote: This is not exactly true. With a rental property HST will be charged at close and unless the unit is rented out for 1 year the HST rebate will not be returned by CRA. That will be a hit of $24k.
Yes true, I was thinking of the New Home Rebate, forgot about the New Rental Property rebate.

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