Hello everyone, my name is Lee Xing and I am still very new to REI, and looking to connect with the BP community in GTA. My current situation is my Mom and I together have a mortgage with CIBC with 920k balance left, and the purchase price of the SFR (my current primary residence) I own is 1.48M. My annual income has two parts 90k from full-time job plus 36k from my own incorporated company. It seems like it will be impossible to get a second conventional mortgage from any banks for me giving my current situation. Any advice or suggestion is appreciated.
why do you want to get a second mortgage?
@Jim Pellerin , oh sorry for using the misleading words. What I mean is get another mortgage for purchasing a second property.
@Alexander Felice appreciate you reply! That is what I am thinking too..... When I bought this house, I didn't think much, and just followed the old school principle from my parents: 'your primary house will be your best investment in life'. Now it really tied up all my resources..... I am planning to sell it sometime in the future depends on the market, but that is not what I can control for now. So I am trying my best to figure out what to do before this situation change. To answer you question, my total dti is around to 62%
don't sweat it, almost everyone makes that mistake. The world says your house will be the biggest purchase you ever make, and you best investment, and we all believe that.
So we go out, and we stretch to buy this giant liability and it sucks up all our resources and then one day we say "hey, my ambition is bigger than just one house, what else can I do?" and the answer is not a fun one.
I say sell your house when you can. You'll need to around a (rolling) 45%-50% DTI to buy investment properties, so you're essentially forced to choose between the two.
There is always the option of funding everything through private lenders but while that SOUNDS better, it's actually going to be more difficult than just making the sacrifice of selling. Though if your present situation is not expected to change, that's the angle to chase.
good luck my friend!
Thanks a lot for the advice. Definitely learned a lot from this mistake. Will always keep it in my mind and move on.
@Lee Xing I'm guessing that between your job and business you don't have a lot of free time, but you do have a bit of money. So I would suggest kicking off a small direct mail campaign. Send out somewhere around 500 postcards a month to MLS listings in a radius around where you live, offering to take over their payments. Average home price in Markham is $834k so I would target houses in the $650k-$1m price range.
You should get a 10-20% response so that's 50-100 leads a month and from that, depending on how skilled you become at closing, you should be be able to pick up several properties a year without having to qualify for the loans.
@Doug Pretorius that's mind blow for me, never thought about that!