Real Estate

Mortgaging a Condo but I want to buy new place, what to do?

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  • May 14th, 2020 4:34 pm
[OP]
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Mar 7, 2010
2460 posts
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Mississauga

Mortgaging a Condo but I want to buy new place, what to do?

I am mortgaging a Condo right now, but I want to get a townhouse.

How is the process work?
If I sell this condo to buy the new place...
And
If I keep this condo and also buy a new place...

How can I get downpayment for the new place if all my money is already in this condo?
3 replies
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Feb 2, 2014
8575 posts
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Toronto
killer007 wrote: I am mortgaging a Condo right now, but I want to get a townhouse.

How is the process work?
If I sell this condo to buy the new place...
And
If I keep this condo and also buy a new place...

How can I get downpayment for the new place if all my money is already in this condo?
It depends on your numbers (income and debts). Maybe you can qualify to keep both, maybe you can't.

You can refinance the condo up to 80% LTV...not sure if they gives you enough for a 5% down payment on the townhome (I am assuming you want to live in the town home....only need 5% down).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Nov 30, 2009
477 posts
67 upvotes
Toronto/Mississauga
CdnRealEstateGuy wrote: It depends on your numbers (income and debts). Maybe you can qualify to keep both, maybe you can't.

You can refinance the condo up to 80% LTV...not sure if they gives you enough for a 5% down payment on the townhome (I am assuming you want to live in the town home....only need 5% down).
If this is a 2nd property, would they need a minimum of 20% down payment if their intent is to keep the condo as a rental? Aside from that, you can refinance or open a HELOC and hopefully it'll be enough to cover the down payment for the townhouse if you could get approved to keep both.
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Feb 2, 2014
8575 posts
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Toronto
DRGN89 wrote: If this is a 2nd property, would they need a minimum of 20% down payment if their intent is to keep the condo as a rental? Aside from that, you can refinance or open a HELOC and hopefully it'll be enough to cover the down payment for the townhouse if you could get approved to keep both.
As long as he's planning to use the town home for personal use, 5% down is fine.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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