Real Estate

Financing Presale Condo - Investment

  • Last Updated:
  • Oct 23rd, 2017 12:28 pm
[OP]
Jr. Member
Dec 23, 2014
154 posts
142 upvotes
Vancouver, BC

Financing Presale Condo - Investment

I purchased a presale condo this year as an investment. I put 10% down (cash) at signing and there is another 2 installments of 5% each 6 months apart. I plan to pay the 2 installments with my HELOC. My question is should i turn the borrowed money (2 payments) from the heloc into a mortgage or leave it in the heloc until I take possession of the condo (sept 18) where I turn the whole thing into mortgage. I can write off the interest to the bank during this time, so no too concerned about higher interest rate. Any advice is appreciated. Thanks.
1 reply
Deal Guru
User avatar
Jun 26, 2005
10015 posts
1886 upvotes
Toronto
There's no right or wrong. You probably know the differences between HELOC vs. Mortgage.

Since you said the rate diff doesn't matter to you much, then the other differences are the things you should compare.

Do you want your monthly payment to pay off your principal as well? Yes? Then mortgage. etc.

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