” Whether it’s for yourself or it’s an investment, here’s what you should know about the rules, requirements and financial implications of buying a second property.”

” If you’re already a homeowner, you’re likely familiar with many of the qualifying criteria, because many of the requirements for buying a second or third property are the same as for buying a principal residence. You will have to qualify for a mortgage under the stress test, have a good credit score (especially if you want to get the most competitive mortgage rates) and have a debt-to-income ratio that falls within the acceptable range for your lender. ”

” The one major difference with buying a second property is the down payment—the amount of money you need to pay upfront in order to purchase the home. As with principal residences, the down payment needed on a second property is tied to the purchase price of the home. However, with second properties, the number of units on the property, and whether or not the owner will live there, impact the size of the down payment as well.”

To read the full article published on the MoneySense website follow the link HERE

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