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Keeping your current home as a rental

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Are you purchasing a new home and considering what to do with your current home? Should you sell it, or maybe keep it as a rental?



When it comes to financing your new purchase, every lender will treat your existing property a little differently. Most banks will want you to include the current mortgage payment, property tax and heat in your debts and will only allow you to add 50% of the rental income back to your income. As a Mortgage Broker, we have access to several lenders who use their own calculations which makes it much easier to qualify. Typically, they will use the rental income and take away the expenses as well as certain percentage for maintenance and vacancy. Any surplus is then added to your income and any deficit is added to your liabilities. Using this second method typically allows you to qualify for a much larger mortgage on your new purchase.

Stay tuned next week and I will provide some tips (from personal experience) if you choose to keep your current home as a rental.



If you have any questions about keeping your home as a rental or any mortgage related questions at all, I'm always happy to help!

www.christinebuemann.com

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Location: 1338 Central St E, Prince George, BC V2M 3C1, Canada

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