| Are you thinking about buying an investment property | | | | will allow you to mortgage your Ottawa property up to |
| in the City of Ottawa but don't think you can afford it? | | | | 75% of its appraised value, you can now mortgage |
| Have you always wanted to try being a landlord, but | | | | your property for $210,000.00. You still have your |
| you aren't looking for a property to buy because you | | | | existing mortgage in the amount of $100,000.00, but if |
| don't have the down payment? Well, there may be | | | | you refinance and put a new first mortgage on your |
| another solution for you. | | | | property, you will have an additional $110,000.00 that |
| If you own your own home in Ottawa, it is possible | | | | you can use as a down payment on your investment |
| that you can buy an investment property with no | | | | property. |
| money down. Here's one option that may be available | | | | Of course you don't need to use all of this extra |
| to you, the homeowner. | | | | money, but it is there if you need it. If you find an |
| Did you know that you are able to mortgage your | | | | investment property that you want to buy that needs |
| home for up to 75% of its appraised value? If your | | | | some TLC, you can use some of this money for the |
| existing mortgage is less than 75% of your home's | | | | improvements if you like. Voila! You have just |
| appraised value, you can use the additional amount as | | | | purchased a great investment property with no money |
| a down payment on an investment property. Let's look | | | | down! |
| at an example. | | | | Of course, there are many other things to consider, |
| Let's say you bought a property 10 years ago for | | | | such as rent, utilities, realty taxes, and insurance. Also, |
| $200,000.00. At the time of purchase, you arranged a | | | | any additional expenses you incur as a result of this |
| new first mortgage on your property for $150,000.00. | | | | extra financing, such as an increase in mortgage |
| You have been making regular bi-weekly mortgage | | | | payments, should be reimbursed to you out of the |
| payments for 10 years and now you owe | | | | rental proceeds of the investment property. |
| approximately $100,000.00 on your mortgage. You find | | | | Be sure to consult with an investment adviser before |
| a great investment property that you want to buy but | | | | implementing any plan, but know that if you are a |
| you are not sure if you can afford it. | | | | homeowner, the equity you have built up in your home |
| You go to your bank and the bank arranges an | | | | may just be the down payment you need to purchase |
| appraisal on your existing home that you own. The | | | | an investment property in the Ottawa area. |
| appraisal comes back at $280,000.00. Since the bank | | | | |