Gabriel Malka Mortgage Broker
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First purchase: triplexes, quadruplexes

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence.

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence. Instead, why not buy a triplex or quadruplex?

Of course, the initial investment will be higher but in the long term, you will win. Do the exercise: The minimum down payment required for a home purchase being 5%, with an average purchase price of $250,000, you will have to pay 12 500$. After a few years, you are tempted to invest in real estate. Buying a rental property prompted a down payment of 20% unless you live there. This means that for a building of $500,000, you will have to shell out $100,000. However, if from the start you buy a triplex or a quadruplex, the down payment, if you occupy one of the apartments, is 10%.

The purchases of such property at a price of $500,000 therefore ask you an initial investment of $50,000. Of course, one of the benefits of owning such a building is that tenants help to pay the mortgage. Thereafter, you can purchase a single-family residence and the required down payment will always be 5% or $12,500 according to the example above. In comparison, starting with the purchase of a multi housing, homeowner, then a single family home, your total down payment will be $62,500 rather than $112,500. That is the right way to start investing in real estate.

The early renewal

Is it worth it?

Your mortgage loan falls due in a few months. The current rate of your loan for a 5 years term is 3,39%. Your financial institution offers you to renew by anticipation, 4 months before the term end, at a rate of 3,09% for a new 5 years term....

Make a budget

You wish to purchase a home, but have you budgeted accordingly?

Before thinking of buying a property, it is important to make a budget to ensure that it does not become a prison, but a place where life is good. It is not necessary to make a complete revision of your income and your expenses. However, buying a ...

Minimum down payment

Portability of the mortgage insurance premium.

You want buy a property but you do not have the capital outlay required of 20% of the purchase price to obtain a conventional mortgage loan. No problem the mortgage lender will refer your file to a mortgage insurer. You will be charge with a mortg...

Mortgage pre-approval

Mortgage broker can help you answer in pre-approving you for a mortgage.

What is its purpose?In the previous article, we discussed the value of a budget and the importance of putting money aside to raise a down payment and to demonstrate to lenders your ability to meet the financial demands of...