Refinancing After Outright Purchase of a SFH
My area currently has a few foreclosures available and many have come to the market over the last year or so. I have been trying to figure out how to get into the market and purchase one of these homes that are selling for well under market value. I already have one property that I got through a conventional mortgage that was CHMC insured. I am unable to obtain another CHMC insured mortgage so I have to put down 20% or use alternative financing. I am focused on using private/hard money to purchase the house outright and then refinance to pay back the private/hard money lender.
I am wondering if anyone has any experience in refinancing a house right after purchase in Canada. I know in the states there is a 6 month cooling off period before you can refinance it. I am assuming the same goes for Canada? Also wondering if I can refinance using the property tax assessment from the city/town as the "value". The foreclosure houses in my area are listed for 60-70% of their appraised value as per the municipality tax assessments. As an example the property tax assessment of a foreclosure house is $100,000 and I purchase it for $65,000 using private/hard money. After six months I try to obtain a home equity line of credit or other refinance tool using the $100,000 tax assessment value, assuming my credit is good enough. I am also assuming a home appraiser would also come up with a similar $100,000 value as well. Just wondering if this is a plausible scenario or will my original purchase price of $65,000 hold more value with potential lenders than what it would be appraised at? Thought I would check with the community before reaching out to local banks/brokers.