Porting a mortgage of a rental - new down payment required?

[RANDLK]

Good day,
My wife and I lost our townhouse condo in the Fort McMurray fire last May and we decided to move abroad until we get the place handled. It is currently being rebuilt, and we're looking at selling or converting it into a rental or RTO property once the rebuild is complete. The mortgage term is up this July, so I was thinking about the following and wondering if it could be a possibility:
Could we sell the property, port the mortgage (so we avoid having to pay a new down payment), and buy a new rental property elsewhere in Canada with better cashflow? The issue is that, given the market situation in Ft. Mac in the last couple of years, we don't have much equity in the place - nowhere near a required 20% down for a new rental. So, we're wondering if this may be a work around.
Looking for ideas,
R

 

[Cory Sperle]

I have ported a couple of times, and I don't see any problem in doing this to a rental property, although I have not specifically done this. Typically you must put 20% down, however I believe if you find the right vendor who is willing to carry you can add another 10% to go up to 90% LTV. The trick of course is being able to cash flow with this high amount of leverage.

 

[RANDLK]

Okay, thanks! I'll do some shopping/looking around to see if that's possible. Yes, may be tricky. We may be better off just renting/holding for now..

 

[Thomas Beyer]

This porting is possible only with sufficient equity in the new place, namely 20%+.

 

[stevenh2]

Good day,
My wife and I lost our townhouse condo in the Fort McMurray fire last May and we decided to move abroad until we get the place handled. It is currently being rebuilt, and we're looking at selling or converting it into a rental or RTO property once the rebuild is complete. The mortgage term is up this July, so I was thinking about the following and wondering if it could be a possibility:
Could we sell the property, port the mortgage (so we avoid having to pay a new down payment), and buy a new rental property elsewhere in Canada with better cashflow? The issue is that, given the market situation in Ft. Mac in the last couple of years, we don't have much equity in the place - nowhere near a required 20% down for a new rental. So, we're wondering if this may be a work around.
Looking for ideas,
R

This may help you oemortgage.ca/mortgage-broker-can-work-payments-care

 

[RANDLK]

Okay, thank you.

 

[Vine Group]

Hello RANDLK, if you are now living outside of Canada, lenders will treat you as a non resident for any future lending. Residency is defined by where you work not citizenship. So, first you need to confirm that the country you are living in is on the approved lender list. Second, you need to confirm the income verification requirements that the lender has specific to your situation. Keep in mind, not all lenders will lend to non resident investors. Third, you can expect to have to put a minimum 35% down for any purchase regardless if your porting or getting a new mortgage. When porting, most lenders will require the closing of the new purchase be within 90 – 120 days of the sale.

Feel free to contact Vine Group at 1.844.411.VINE, if you have any questions.