North York Rental Portfolio Moved from Private Mortgages to A Lender Using Rental Worksheet Strategy
North York clients owned five properties in total: one primary residence and four rental properties. They had received incomplete advice and were told by their realtor that the last two rental properties they purchased could only be financed through private mortgages. As a result, they were paying high interest. We reviewed the entire portfolio. Their personal income was good, and the properties were generating rental income. Every lender treats rental income differently. Some lenders use an offset method, while others use rental worksheets. If the worksheet shows a surplus, the surplus can be added to income; if it shows a shortfall, the shortfall may be added to liabilities. The key was identifying a lender with a more generous rental worksheet. We obtained an A-lender approval.
- Solution
- A-lender refinance
- Purpose
- A-lender refinance to exit private mortgages using favourable rental worksheet treatment