# Applying for a second mortgage



## nathan79 (Feb 21, 2011)

I currently have one property with a mortgage which I intend to keep. It's currently tenanted which covers the mortgage and other expenses.

I would like to buy another property and get another mortgage. 

How do I complete the application? Do I put my existing mortgage payment under "monthly loan/credit card payments"? There's also a strata fee, taxes, etc... so should I just lump those all into one figure?

What do I put for income... my regular income + gross rents, or regular income + net rental income/loss?


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## birdman (Feb 12, 2013)

The lender will assist you with the application process.


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## marina628 (Dec 14, 2010)

Best to do rental mortgage applications in person and they will only count 50% of the rent .


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## nathan79 (Feb 21, 2011)

Okay, thanks. I had a feeling I would end up doing that.


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## Just a Guy (Mar 27, 2012)

You might be better off refinancing the existing mortgage for a higher amount. You pay the penalties to break the mortgage, but you save on the interest...


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## Mortgage u/w (Feb 6, 2014)

Several questions come to mind....what's you're current living situation? Are you buying an owner-occupied property and the current one you have becomes a rental? Or are you buying another rental and staying in the current one or elsewhere.

When it comes to rental properties, there are 2 ways lenders will qualify them:
1- On the liabilities side, all expenses are considered; current mortgage payment, taxes and heating or condo fees if applicable. On the income side, only 50% of the rental income can be considered and added to your employment income.
2- Second method; a rental analysis is done. Every lender has different criterias but generally, the expenses are offset by the full rental income. Management fees, Insurance, repair and vacancy rates are usually factored in. If you have a surplus, this can be used for qualification. If you have a negative, this will be added in your liabilites. In this scenario, no other expenses are considered on the liabilities side.

If you are buying a rental property which will be fully rented, then only the first method above is available and used by all lenders.


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## nathan79 (Feb 21, 2011)

Mortgage u/w said:


> Several questions come to mind....what's you're current living situation? Are you buying an owner-occupied property and the current one you have becomes a rental? Or are you buying another rental and staying in the current one or elsewhere.
> 
> When it comes to rental properties, there are 2 ways lenders will qualify them:
> 1- On the liabilities side, all expenses are considered; current mortgage payment, taxes and heating or condo fees if applicable. On the income side, only 50% of the rental income can be considered and added to your employment income.
> ...


I would be keeping the existing property as a rental, and living in the new property.

Thanks for the info.


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