Have you been thinking about buying an investment property? Now you may think that you now require a 20% down payment in order to buy an investment property and in general that is correct but sometimes there may be other options.
But here is a quick story for you.
A past client of mine recently referred a friend, who lives in Vancouver, to me. They wanted to purchase a condo here in Kelowna. They had met with their bank’s mortgage specialist and explained that they were interested in buying an investment property. They were advised that they would require a minimum 20% down payment due to the new rules on investment property financing and to come back when they had one. The problem was that they didn’t have the means to come up with the extra funds required.
After speaking with them they shared with me that they were actually purchasing a small condo for their son to live in while he was attending UBCO here for the next 3 years. It made more sense to them to purchase rather than to pay the rent over an extended period of time but they were disappointed that they needed a 20% down payment.
I let them know that there is a program available whereby you can purchase an investment property, with less than 20% down, as long as a family member will be living in the home.
So here is a tip for you . . .
When you get a “no” for an answer, seek a second opinion. As a Mortgage Broker I have many programs available for clients that may not fit at a bank.
April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 20 years. April is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects and specializes in Strategic Mortgage Planning. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia and across Canada through the Mortgage Architects network. April can be reached at 250-826-3543 or april.dunn@mtgarc.ca