At Your Mortgage Needs, we understand that your family’s needs go beyond just your own household. Our Buying a Home for Family program can help you purchase a property for your loved ones or a second home. Whether you’re helping your children get started or securing a getaway for yourself, we’ll work with you to find the right solution that fits your goals.
Keeping Your Existing Primary Residence and Buying a New Primary Residence
Owning two homes—your current and a new primary residence—can open up exciting possibilities, but it requires careful financial planning. Here’s what you need to know:
Common Questions About Keeping and Buying
- How can I qualify for a second mortgage while keeping my current home?
- Lenders will assess your income, debt levels, and the equity in your current home.
- If you plan to rent out your existing home, potential rental income can sometimes be factored into your mortgage qualification.
- Can I use the equity in my current home as a down payment on the new property?
- Yes, through a refinance or a Home Equity Line of Credit (HELOC), you can access the equity in your current home for the down payment on the new home.
- What are the tax implications of keeping my existing home?
- If your current home becomes a rental property, you may need to declare the change to the Canada Revenue Agency (CRA) and could be subject to capital gains tax when you sell.
- Do I need additional insurance for a second property?
- Yes, rental properties require landlord insurance, while a second primary residence will need standard home insurance.
- What are the risks of owning two properties?
- Risks include vacancy in the rental property, managing two mortgages, and unexpected maintenance costs. Proper budgeting and contingency planning can help mitigate these risks.
