I am (65+ years old) and am looking to buy a retirement home (for $230,000 with a 20% deposit) but do not have sufficient income to support both mortgages – I was told by a banker. However, the home I currently own is a co-op that is valued at $400K plus. The balance on my loan is $77K – which proves that I have a lot of equity in property. I also own a rental property – which is fully paid off and have two 401(k) and a pension that I have not accessed as yet, in addition to IRA’s, CDs and money market accounts. With the scenario mentioned above, is it possible to receive a mortgage, outside of selling my current residence or getting a co-signer to purchase the second property.

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    You may not have sufficient income for two mortgages, but you still may be able to afford the home. Do you have the funds to purchase the house in cash without using too large a percentage of your retirement nest egg? Would you consider selling your rental property? With no other income, it becomes a question of net-worth, liquid funds, and your desired lifestyle.
    – jkuz
    Jun 1, 2016 at 20:11
  • Chris - thanks for your response. My intention was to sell in a few years and pay off mortgage of new house. Need to purchase now however to benefit from low mortgage rates and escalating house prices.
    – JOY
    Jun 2, 2016 at 15:56

1 Answer 1


To me, the simple answer might be to tap the equity in the $400k home you owe $77k on and use the proceeds to purchase the new retirement home. Even if you were to do that, you'd still have almost $100k in untapped equity in the existing home, no mortgage on the retirement home, nothing out of pocket (other than refi fees), and probably no more of a mortgage payment than you already have on the house with equity. I don't see any reason why the bank wouldn't go for that, especially if you've got a good payment history on your existing mortgage.

I hope this helps.

Good luck!

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