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Different Option Available to Finance a Rental Property in Victoria BC
What is the Rental Property? ď‚´A property that is given to the tenants by the owner and for which the owner receives consideration from the tenants is termed as a rental property.
What are the Options Available to Finance a Rental Property? 1) Typical Home Mortgage: ď‚´To avail it, you must have sufficient funds because down payment and approval requirements in case of financing rental property are stringent in comparison to the mortgage for a regular property. 2) Home Path Investment Property Financing: ď‚´With no mortgage insurance and an ample amount of finance for renovation, this option requires only a 5% down payment from the prospective borrower.
What are the Options Available to Finance a Rental Property? 3) Home Equity Line of Credit: It is an affordable option to get leverage in the real estate finance market. 4) Private Funding: This process is faster than the conventional mortgage process.
Important points to consider when financing a rental property If you have positive cash flows, then pay the principal amount of the line of credit. If you happen to retire in a few months, carrying on the debts is not a good option. Your long and short term objectives determine the option you choose. The taxation benefits which the landlord and tenant can obtain from financing a rental property must be properly understood.
Contact us A single bank doesn’t finance more than 4 rental properties because of security reasons. You can get in touch with experts at Christie Phoenix Insurance for further clarification on finance on rental properties. For more information visit us at http://christiephoenix.com/.
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