How many mortgages can you have in Canada?

How Many Mortgages Can You Have in Canada?

“How Many Mortgages Can You Have In Canada” is an interview between interviewer Katie B. of Always Brave Creative and Mortgage Broker Lisa McInnes of Verico Paragon Mortgage Inc.

From investing to purchasing the perfect vacation home, there are many reasons why a homeowner might want more than one mortgage. In this interview, Broker Lisa McInnes answers questions regarding multiple mortgages. 

Can a Canadian Homeowner have more than one mortgage?

Oh yes! It’s very common and I help many clients obtain mortgages for second, third, or even fourth properties. The trick is that the Borrower will have to find a Mortgage Broker who knows Lenders willing to take on Borrowers with large portfolios. These alternative Lenders often help the Borrower make huge strides in real estate investment. Of course, that’s just another reason why the right Broker is also so important. 

How many mortgages can you have in Canada?

As many as you qualify for! As long as there is sufficient evidence that the Borrower is able to debt service for the purchase within the ratios, we can find the Lenders to fund their goals.

People Also Ask:

Is the mortgage application process for a second mortgage the same as the first?

It is, with a few caveats. Depending on several factors, there are multiple products I can help the client apply for. However, if the Borrower is planning on using a home as a rental property, there is a hard rule that 20% is needed as a down payment. The Borrower’s current income must also undergo the same verification process as a first-time homebuyer.

Of course, it’s nice to have a second home or earn rental income, but are there any other benefits associated with having multiple mortgages?

There are some hidden pluses! If you own a property without a mortgage, it can make financial sense to put a low-interest mortgage on it and invest the money. That has the potential to change your retirement completely, and through working with a financial planner, a mortgage broker, and an accountant, you could potentially write off the interest. The key is to make sure prompt payments are made in full so it doesn’t affect your credit score.

Want to learn more? Serving homeowners Canada-wide, Lisa is happy to connect directly.

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