Owning a rental property for extra income can be very rewarding. I’ve put together a few introductory points to consider before making the leap.
You might be surprised to learn that you don’t need to be one of the uber rich or make six figures to have a second property. You just need to have knowledge, determination and financial planning!
If you are purchasing a secondary property with the intention to rent, here are a few extra things to know:
Prior to taking on a secondary property, you will need to have your down payment in order (whether from savings or home equity) based on the minimum requirements, and also have sufficient credit score to qualify. In addition to the down payment, you will also need to pass the stress-test and prove that you can financially carry your existing mortgage and the new application.
Tim Ward, Collingwood Mortgage Broker.
Looking to purchase a rental property?
If you are looking to purchase a rental property, give me a call before you start. I would love to help review your financial situation, current mortgage and equity, and help you make a plan.
The keys to success are right around the corner with a little bit of expert advice!
