You may think that you now require a 20% down payment in order to purchase an investment property and in general that is correct.
But here is a quick story for you.
A past client of mine recently referred a friend, who lives inVancouver, to me. They wanted to purchase a condo here in Kelowna. They had met with their bank’s mortgage specialist and explained that they were interested in purchasing an investment property. They were advised that they would require a minimum 20% down payment due to the new rules on investment property financing and to come back when they had one. The problem was that they didn’t have the means to come up with the extra funds required.
After speaking with them they shared with me that they were actually purchasing a small condo for their son to live in while he was attending UBCO here for the next 3 years. It made more sense to them to purchase rather than to pay the rent over an extended period of time but they were disappointed that they needed a 20% down payment.
I let them know that there is a program available whereby you can purchase an investment property, with less than 20% down, as long as a family member will be living in the home.
So here is a tip for you . . .
When you get a “no” for an answer, seek a second opinion. As a Mortgage Broker I have many programs available for clients that may not fit at a bank.
PS: Who’s the next person you know you may be thinking of purchasing an investment property? Be sure to give me a call at 250-826-3543 so they learn about “all” of the options available.