CANADA MORTGAGE AND HOUSING ADDS NEW
If you have been tossing around the idea of purchasing an investment property you might want to move a little faster. CMHC is adding more rules to their already stringent criteria and their newest rules will make it difficult for the person who wants to buy thier first income property.
Canada mortgage and housing insures mortgages for people who have less than 20% of the purchase price to put as a down payment. What people have done in the past, is keep their first home and rent it out and move on to a larger home with less than a 20% down payment and end up with two homes that are insured by CMHC. The new rule states that only one home that you own will be insurable.
Plenty of people are looking at rental property as a way to supplement their retirement income. Think about it. You purchase a property and someone else pays the mortgage and expenses so you are out of pocket the initial down payment. In 15 to 25 years you have a large saleable asset which should give you a significant monthly income free and clear. What could be better?
Call me now for more information on purchasing a rental property, choosing the right tenants and helping plan for your freedom.