19

Right. This is a complicated situation. You need 20% down to buy an investment home, and new mortgage stress test rules mean you have to be able to survive a 2% increase in the interest rate (citations: https://globalnews.ca/news/3897942/new-mortgage-rules-2018-canada-guide/ and https://globalnews.ca/news/4097215/canada-new-mortgage-rules-stress-test-2018/) ...


10

No one can answer this but yourself.... 1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another. 2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more ...


9

The bank issuing a construction loan pays the builder the total money not in one lump sum but in several smaller amounts (perhaps monthly) for all the work done since the last bill was submitted by the builder. The bank usually sends out an inspector to verify that the work the builder claims to have done has actually been done, and also checks that the ...


7

"Second Mortgage" is not a legal definition - it just describes a mortgage or loan that is subordinate to another loan, meaning that in the case of foreclosure the other loan is satisfied first. If the "first mortgage" is paid off, then there is no loan to be subordinate to, so the "second" mortgage then is first in line in the event of foreclosure. So ...


6

Thank God you have your child back, it is so awesome that you finally found a medical treatment that worked. It must have been a truly trying time in your lives. That situation is an important template in personal finance. Through no fault of your own, a series of events occurred that caused you to spend far more money then you anticipated. Per your ...


6

I do not need this much big home. Three rooms should be enough for me. This is the only real tick mark in favor of selling your current home. By booking the profit, I can invest the amount (other than my share in new home) in some good investments. Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason ...


5

I am a real estate agent. I know you are in Canada, but will let you know that in the US, agents are not to supposed to offer this kind of advice. They can refer you to a bank or mortgage broker, but should not be giving this type of financial advice. That said, it's a HELOC, it would be rare for your bank to be willing to just add to your mortgage at the ...


5

The first issue you'll find is that if you aren't going to immediately live in the house as a primary residence, this property counts as a "second home" or "investment property". You'll generally pay a higher interest rate, have a larger down payment, and qualify for less government-backed programs/incentives/subsidies than you would otherwise. The lending ...


5

A second mortgage is a loan taken out on your house while you still have another mortgage secured by your house. They are a secured loan as they use the borrower’s home as security. Some advantages of Second Mortgages: They allow you to borrow a large amount as the loan is secured against your home. They have lower interest rates than other types of debt. ...


4

If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.) Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments. So if you don't need ...


4

I'd like to propose a 4th option: Let your kid(s) take out their own student loans, and then you can make payments directly to help them pay them down. Some advantages to this method: Similar to the HELOC and Parental student loans, the debt doesn't occur until the tuition is actually paid, so your overall interest is lower (compared to the second ...


4

I doubt it. I researched it a bit when I was shopping for a HELOC, and found no bank giving HELOC for more than 80% LTV. In fact, most required less than 80%. Banks are more cautious now. If the bank is not willing to compromise on the LTV for the first mortgage - either look for another bank, or another place to buy. I personally would not consider buying ...


4

I've had a hard time finding out details on remortgaging Help to Buy loans myself, but found one article (http://www.thisismoney.co.uk/money/mortgageshome/article-3038831/Help-Buy-borrowers-risk-missing-best-remortgage-deals.html) which points out it IS possible. But also that there aren't many lenders offering such deals out there. The article lists a ...


3

There are three reasons to refinance: To reduce one's interest rate To extend the term and improve cash flow To pull cash out for a worthy purpose. If her goal is simply to avoid a bad customer service experience, I don't know that the expense of refinancing is worth it. If one of three above come in to play, it may be worth pursuing. To address her ...


3

There are a few of ways to do this: Ask the seller if they will hold a Vendor Take-Back Mortgage or VTB. They essentially hold a second mortgage on the property for a shorter amortization (1 - 5 years) with a higher interest rate than the bank-held mortgage. The upside for the seller is he makes a little money on the second mortgage. The downsides for the ...


3

Have you considered refinancing to a 7-year fixed? I just ran a few numbers on your situation and came up with this: 9.125% is a really high interest rate. If you make minimum payments through 15 years, you're paying over $75,600 in interest, and only $12,200 in principal. If things play out and you get through the 15 years and make the final balloon ...


2

9.125% is a very high interest rate. Ignoring the fact that you have a very large balloon payment due 7 years from now, this loan is costing you at least $4500 a year in interest. True, you get some of this back as a tax deduction, but the odds that you'll beat this by investing somewhere are not that great. Pay off the second mortgage, as soon as you can,...


2

In real estate,loan consolidation essentially means taking out a large loan on one property from the proceeds of which you pay off all the other mortgages. Unless you are able (or willing) to reveal how much more you can borrow against your home or the third property (who has the remaining interest in the third property, and would they be willing to mortgage ...


2

You can't get a HELOC, to the best of my knowledge, without actually "owning" the house. If you get an 80% mortgage (of the purchase price - not the appraised value, btw), you still need 20% as a down payment. Once you own the home, you can apply for a HELOC ... presuming you have enough equity (eg, the purchase price is $40k less than the appraised value)....


2

To littleadv's comment, walking away may be the best option. If your numbers are as described, any ideas we could offer on earning or raising cash would be best to use as money to live on, not to pay down a loan on an under water house. the double wide you propose to buy will like cost less than your HELOC balance. I'd see if you could buy that home first, ...


2

You did borrow money for the downpayment. When you apply for a mortgage loan on your new home, you will be required to list all your assets and all your liabilities. You must disclose the first mortgage as well as the second mortgage on your current condo as well as the monthly payment on each of these loans. If you took out the second mortgage five years ...


2

Debt is no fun. Getting out of debt to replace it with more debt is no fun. In both cases, you are making an investment in your child's future. That's laudable, but there might be other ways to economize on the education costs. I prefer HELOC debt because I can deduct the interest (as you pointed out) and it usually allows re-borrowing if other cash-flow ...


2

First of all, I'm happy that the medical treatments were successful. I can't even imagine what you were going through. However, you are now faced with a not-so-uncommon reality that many households face. Here's some other options you might not have thought of: Cheaper school for two years Kids live at home instead of on-campus Sell some things to raise ...


1

There is no profit here, and there is no investment. It is your home and since everybody pays for the bed they sleep in, it is a cost, not an investment. If the house you are in has gone up in value, then so has the identical house next door and by the same amount, so moving from one to the other would not realize a return on an investment regardless of the ...


1

Financially, no. You're reducing your retirement savings (giving up the potential returns) and are adding a debt payment (the $200k+ you need to borrow). So you're paying interest and reducing investment earnings. It's not going to bankrupt you, but it's not the optimal scenario. You're already saving less than you'd like - why reduce that even more with a ...


1

This is very opinion based and you guys are in great shape regardless of the decision. What you are telling us is that you need to find 75k (250k-175k). Currently you have about 102k (between CDs and Efund) in cash that is not dedicated to the house savings. That is a very large emergency fund for a two income household with a paid off house. What are ...


1

Obviously the best way to consolidate the real-estate loans is with a real-estate loan. Mortgages, being secured loans, provide much better interest rates. Also, interest can be deducted to some extent (depending on how the proceeds are used, but up to $100K of the mortgage can have deductible interest just for using the primary residence as a collateral). ...


1

I apologize in advance if this seems heartless, Lord knows many on this site would consider me such, but it is my intention to be helpful. Rhetorically: Given your disability, could you find a different line of work that would have earn you a decent income? You mentioned fighting for disability for 5 years. Could that time have been spent creating a ...


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