Obtaining financing on residential rental
Hi all. This is my first post on bigger pocket so please forgive my ignorance.
A little bit of background, my parents and I are currently looking into obtaining a residential rental property. We are in Toronto, where I feel like property price is somewhat inflated, but that's another discussion. Here's the low down on our current situation.
1. My parents bought a home 5 years ago, currently it's valued at approximately 450k, with 200k mortgage outstanding. They are renting out 1 room, gross income $1300/month. Their combined income is about 65k/year.
2. I bought a condo 2.5 years ago, currently it's valued at approximately 450-500k, with 225k mortgage outstanding. I'm renting out the entire unit, gross income is $1980/month. I live with my parents and paying them below market rent. I make about 60k/year.
Now we have 150k in cash and want to see if there's any way to purchase a rental property under all of our names. Is there a way to find out how much financing we can obtain? I asked major banks in Canada but it doesn't look like they take in the consideration of the rental incomes, so to the banks, my parents have 65k income on a 200k mortgage, and I have 60k income on a 230k mortgage, and they will not be providing any finance option to us at all.
I just want to see if there are any options out there, if not that's totally fine too but I want to confirm before going out and look at properties. Any help is appreciated. Thanks.