Let’s say you don’t want to sell because you either want to start building a rental portfolio, or maybe you’re going to lose money if you sell. This is especially the case if you bought a condo in Edmonton in the last few years. So what we can do to help you qualify for the next property is to get something called a market rent letter from an appraiser. This is assuming you don’t already have a tenant lined up, odds are you don’t. The market rent letter is an opinion on what your current property will rent for. And what we get to do is use a certain percentage of that income to help you qualify for the next property. Let’s say it’s a thousand dollars rent—we either use $500 or $750, depending on the scenario. That helps offset the cost of the existing property, and then your work income, et cetera, helps you qualify for the next property. So it’s important to work with a mortgage broker because different lenders will have different policies around rental income on existing properties and you really do want to maximize your opportunities to get the next place. So if you have questions, feel free to reach out!
I have a great video on “what are rate holds” too.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.
