Real Estate

Mortgage vs Home Equity Line Question

  • Last Updated:
  • May 17th, 2019 1:26 pm
[OP]
Newbie
May 12, 2019
16 posts
2 upvotes
vancouver

Mortgage vs Home Equity Line Question

Hi, I have no mortgage investment property and planning to buy another one. I am just wondering should I get a traditional mortgage or a Home Equity line (against my paid off investment property).

Which rate would be better? Thanks for any help in advance.
3 replies
Deal Guru
User avatar
Mar 23, 2008
11905 posts
8160 upvotes
Edmonton
JennyY27541 wrote: Hi, I have no mortgage investment property and planning to buy another one. I am just wondering should I get a traditional mortgage or a Home Equity line (against my paid off investment property).

Which rate would be better? Thanks for any help in advance.
Mortgage is typically a lower rate, but a HELOC is more flexible (can re-borrow against it). You might even want to set up both, to give you the flexibility in the future to re-borrow for another property.

Talk to a broker to get actual details and numbers.

C
[OP]
Newbie
May 12, 2019
16 posts
2 upvotes
vancouver
Thanks. am I able to get a mortgage using my paid off investment property as collateral to pay for my new investment property since mortgage rate is better?
Deal Guru
User avatar
Mar 23, 2008
11905 posts
8160 upvotes
Edmonton
JennyY27541 wrote: Thanks. am I able to get a mortgage using my paid off investment property as collateral to pay for my new investment property since mortgage rate is better?
Your broker is your friend. But why would the rate be better for your old property vs. your new property? Where did you get your numbers from?

As far as that goes, the lender doesn't care what you use your mortgage funds for. You could take the funds out and go party in Vegas, or you can use the funds for a new property. Lender doesn't care. All they care about is the equity and you making payments.

C

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