How to Buy a Second Property and Rent out First in Canada?
Buying a second home in Canada? When you have decided on buying a second house in Canada, you must consider if you can afford the new house or if you have made a 20 percent down payment of that house or if you own a mortgage on your present home or not? You have all the answers with yourself, and your lender might ask you about all this. Can you afford another house? If you are looking forward to renting your present house, you are likely to check the debt ratio. This will let you know if you can meet the current and future debts or not. Renting out the first accommodations in Canada There is no harm in renting out your first house in Canada, as the lenders will approach to include a small amount of your rental income in the mortgage of your existing house. There will be a strict lending stress test that will enable the lenders to know if you can really afford a new house if, in the future, the rates of interest increase. The lenders might also wish to know if you will be able to pay t...