Refinance question/help needed!
My wife and I are self-employed. I own the following rental properties all in Ontario. These 2 rental properties have a good amount of equity in them.. We will be closing rental property #3 at the end of 2022 purchased by the builder.
Property #1: Mortgage just got renewed @1.9% and has equity of almost 700,000.
Property #2: Mortgage renewal is due in December 2021. Currently at 3.9% fixed, equity almost
600,000.
We are considering our options:
Option #1: Refinance both 1 & 2 and pull out the equity to be prepared for 2022 closing as we are self employed although both have over 800 credit score but I am sure banks won't entertain us as we tried before and were told we don't qualify. We would prefer to stay with A lenders to get good rates, hence not considering private lenders.
Option #2: Refinance Only one property #2 with the same lender as the renewal is coming up and save the money for 2022 closing.
Question #2:
What would be the tax implications and would there be any capital gains when we we finance property #2.
Property #1: Mortgage just got renewed @1.9% and has equity of almost 700,000.
Property #2: Mortgage renewal is due in December 2021. Currently at 3.9% fixed, equity almost
600,000.
We are considering our options:
Option #1: Refinance both 1 & 2 and pull out the equity to be prepared for 2022 closing as we are self employed although both have over 800 credit score but I am sure banks won't entertain us as we tried before and were told we don't qualify. We would prefer to stay with A lenders to get good rates, hence not considering private lenders.
Option #2: Refinance Only one property #2 with the same lender as the renewal is coming up and save the money for 2022 closing.
Question #2:
What would be the tax implications and would there be any capital gains when we we finance property #2.