I would like to buy a rental property soon but because I won't be living in it I have to put 20% down. I don't have enough capital for that, I was wondering if I can use my student line of credit for the $5000-$10000 missing. Does anyone know or is there something similar that I can look into?
The answer is yes and no. You can use the funds, but the bank or CMHC won’t let you. Best thing would be is to advance all the funds to a separate savings account at least 3 months in advance beforehand, as that’s what they’ll likely ask you to provide for proof of downpayment. Just a little jump around the system. Message me if you’d like to discuss further!
@Devin Solberg Thanks that's good to know.
Devin is correct. Just be aware you'll now increase your DTI, so make sure you can still qualify with that new added debt. Another option i'd consider is if it's possible to borrow the money from someone to be paid back right after closing. The security of someone lending you money is that you are able to pay them back 100% with no issues because you have access to your student line of credit. Maybe pay a little interest for borrowing money. Just a thought. Good Luck!
@Chris DeMello You're right, that's something I will take into consideration. Thank you so much!