Small Mortgage?

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Mar 7th, 2022 4:34 pm

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Mar 6th, 2022 2:31 pm

muscleflex [OP]: Sr. Member; Jun 10, 2016; 503 posts; 384 upvotes; Brampton

Mar 6th, 2022 2:31 pm

Small Mortgage?

This is a slight variation on a previous question I posted:

No current mortgage - say I buy a new place that is only slightly more than what I'm going to get out of my current place - put everything from my current place (after closing costs) down on the new place, but about $50 000 - $100 000 short of paying the whole thing in cash - can I easily get a mortgage for that last $50 000 - $100 000? Are there any other options? Would I just be looking for an open mortgage that I can pay off as quickly as possible? Haven't had a mortgage in awhile so I feel very out of touch with how all this stuff works!

Thanks in advance!

2 replies

Mar 7th, 2022 11:38 am

JUnit: Deal Addict; Dec 28, 2007; 1181 posts; 773 upvotes

Mar 7th, 2022 11:38 am

A few options I can think of:
1. An open mortgage
2. Short-term fixed-rate mortgage (i.e. 6 months-1 year). Make extra payments as allowed and pay off as much as you want at the end of the term.
3. HELOC. One advantage of a HELOC is that as it's paid down, you still have the credit available in case of an emergency or for other purposes. Many banks will also let you lock in a portion at a fixed rate.
4. If you have a sizable non-registered investment portfolio, you could move that into a margin account and borrow against it, which would save the legal fees with setting up a mortgage or HELOC. Some risk of a margin call if there is a stock market crash.

Mar 7th, 2022 4:34 pm

muscleflex [OP]: Sr. Member; Jun 10, 2016; 503 posts; 384 upvotes; Brampton

Mar 7th, 2022 4:34 pm

JUnit wrote: ↑ A few options I can think of:
1. An open mortgage
2. Short-term fixed-rate mortgage (i.e. 6 months-1 year). Make extra payments as allowed and pay off as much as you want at the end of the term.
3. HELOC. One advantage of a HELOC is that as it's paid down, you still have the credit available in case of an emergency or for other purposes. Many banks will also let you lock in a portion at a fixed rate.
4. If you have a sizable non-registered investment portfolio, you could move that into a margin account and borrow against it, which would save the legal fees with setting up a mortgage or HELOC. Some risk of a margin call if there is a stock market crash.

thank you for this! it gave me more to think about!

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