Q: I am buying a presale condo with my spouse. This will be our first principal residence. I am thinking of buying a second presale condo at the same time under my own name as a rental property. How will this affect my mortgage with my spouse? Will I be able to get two mortgages? Appreciate if you can help me.
Asked by Janise, Montreal, QC
The answers to these questions depend on many variables, including down payment availability, your current income, your spouse's income, your current debt load, etc.
If you have enough room within the lending guidelines for both mortgages, and you have sufficient funds available for the down payments, then you should be fine.
A couple of things to remember…
- Rental properties require a higher down payment, and a higher interest rate may accompany them.
- When qualifying for your rental property mortgage under your own name, only your income will be considered, but both full mortgage payments will be used in the calculations - along with the property taxes and condo fees for both properties.
A qualified Mortgage Professional will be able to help you prepare before entering into these purchases.
And good for you…for getting out there and building your net worth!