# Pulling Equity out Of Fixed Mortgage for 2nd Property



## ForeverStrong (Mar 3, 2017)

Hey guys/gals, looking for some basic info on what's involved and if you can even pull equity out of a fixed mortgage. My rental property is under mortgage with CIBC, and I've heard that you cannot pull equity out of a fixed mortgage. Does anyone have experience with this? 

Looking to pull some equity out to purchase a 2nd rental property.


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## twa2w (Mar 5, 2016)

ForeverStrong said:


> Hey guys/gals, looking for some basic info on what's involved and if you can even pull equity out of a fixed mortgage. My rental property is under mortgage with CIBC, and I've heard that you cannot pull equity out of a fixed mortgage. Does anyone have experience with this?
> 
> Looking to pull some equity out to purchase a 2nd rental property.


This will depend on your bank and how the mortgage is set up.
It will also depend on whether the mortgage is high ratio(cmhc).

Some mortgages are set up to be readvanceable up to the original mortgage amount. Process is simple but may require requalification and appraisal.

You may also be able to refinance your mortgage up to 80% of your house value. This will require requal, appraisal, legal.

Best advice is ask your bank for options. Then you may want to check on this board for opinions on how to proceed.


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

You will need to consider the following:
1- see if your mortgage term and rate can be blended. If yes, you avoid the penalty. If not, you will pay a penalty to break your mortgage term in order to start a new one.
2- you can only refinance a property up to a maximum of 80% loan to value. You bank or an appraisal will determine the fair market value. If you recently bought with less than 20% down, chances are the property did not gain enough equity.
3- you will need to pay solicitor fees to re-register a new lien.


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