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Mortgage Helpers Can Help you Buy More
For purchasers who have 25% down payment, but are limited to the mortgage amount that they qualify for because of their income, we may have a solution for you so that you can buy your “dream home”. By purchasing a property with a basement suite you may be able to qualify for a higher mortgage, and therefore you may be able to purchase that property that is outside your current “mortgage budget”.
For example:
Let’s look at a couple, Sue & John, with a joint income of $70,000.00 per annum. Currently they have been qualified to receive a mortgage of $253,700. Luckily Sue and John have a good down payment available to them of $85,000, which puts them into a price range of $338,700.
Unfortunately, they can only find homes that do not meet their needs. However, by purchasing a property with a basement suite Sue and John can now look for homes at a higher price level.
Maximum monthly mortgage payment based upon income of $70,000/annum is $1700/month*
| Without a suite |
|
With a rental suite |
|
| Max.Mortgage |
$253,700 |
Max. monthly payment |
$1700 |
| Down Payment |
$ 85,000 |
rental income |
$800** |
| Purchase Price |
$338,700 |
Total max. payment |
$2500 |
| max. mtg. amount |
$373,200 |
| Down Payment |
$85,000 |
| max. Purchase Price |
$458,200 |
As you can see, by having a rental suite Sue & John can afford to look at properties in a much higher price range and therefore get more for their money.
* calculations based upon 6.5% interest rate ( financing provided by 1st and 2nd mortgage)
** rental income is estimated and is looked at on a case by case basis
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