All Forum Posts by: Julie Toh

@Account Closed I'd pay for the property in cash, then refinance and use the cash to purchase a cash flow rental property.  When you borrow money for the purpose of earning income from a business or property, the interest generated is tax-deductible. Look up CRA Income Tax Act S. 20(1)(c) or ask your CPA. 

Full disclosure: I'm a mortgage broker in Vancouver

@Shreyasi Das Generating positive cash flow income from investment properties is an advantage in itself.  As a permanent resident you are exempted from paying the foreign buyer property transfer tax - another advantage! 

@Shreyasi Das Welcome to Vancouver, B.C. and also to Biggerpockets. Have you looked at other markets in B.C.? 

@Brian Erickson @Theresa Harris Foreign Nationals pay the additional property transfer tax if the residential property is located in these specified B.C. areas.

https://bit.ly/2TMQkJu

@Kevin Khalaf Do you have a HELOC? This can be a good a source of funds to use for a down payment.

@Dustin Twin I concur with Roy N's comment, "The strategy to acquire a property via a cash purchase or off-market (private money or hard-money) financing, then (re)financing through a conventional lender once it has been renovated/retrofitted works just fine in Canada." 

I structure financing for investor clients across Canada using Mortgage Investment Corporations (MICs), they've been around since the 70's. MICs now play an increasingly important role in catering to underserved niches because the new regulatory environment has created many gaps for borrowers.

Not only has the MIC sector grown in size in the last five years, but it has also evolved from being a minor player in the market to becoming far more established and professionally run with significant investment in infrastructure and technology, and improved regulatory compliance.

My financial advisor in Vancouver advises me in both. 

@Shaidah K. Congrats on getting a new rental in Campbell River. Renters offering to pay more rent is unheard of in Vancouver, in the end how much did you rent it for?  Thanks for sharing. 

If you need more funds, a HELOC is always handy to have. We leverage our HELOC to acquire new rentals.

@Levi Rietveld I structure mortgages for my clients and my advise is that they'd need 1.5% of the purchase price for closing costs. Financial Institutions may ask for proof of this. The closing costs are: property tax, property transfer tax, move-in fee (strata), condo fees, legal fees, appraisal fees, and moving costs.

@Nes Canada congrats on purchasing your first rental property two years ago.  I remember buying my first rental in Vancouver, I felt so excited and amazed I could even 'afford' one. I wasn't a mortgage broker at the time but I am today! I am structuring a mortgage for our 6th property and having access to over 40 lenders is a definite advantage. 

@Marie TaiA group of us met the summer of 2018 in downtown Vancouver for coffee to share practices and I believe there'll be more meetups to come.