# Financing Question



## simonj (May 19, 2011)

I purchased a vacation rental property rental in the US which I paid for in cash. How can I tap the equity in the property to buy a second property. I am self employed, so my net income is low on tax returns after all the write-offs and imagine it would be hard to get a loan or heloc from the bank. Property is generating 25-35% ROI.


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## leblanc (Mar 19, 2014)

*Leverage*

Leverage your rental property, and take out a home equity loan against it. Use this money as a down payment for your second property. Continue to let your rental property work for you.

If your business for self, keep in mind that there are stated income programs available from multiple lenders. It may not be as hard for you to get a loan as you believe.

I know this because I am a broker.


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## marina628 (Dec 14, 2010)

You can try TD and RBC for this ,they accept the rental income and fairly easy to get 65% equity out.


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

Since your property is in the US, you will have to get financing in the US. There are some canadian bank branches down there that can help....otherwise you will need to find a US bank which can offer a mortgage to a non-resident.

Here in Canada, you will not be able to finance a US property. I'm not too sure if there are any branches here that corresponds with their US counterpart....if yes, that can simplify stuff. But I beleive you're best bet is to seek in the US.


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## leblanc (Mar 19, 2014)

*Financing*

Actually, Canadian lenders can and WILL finance U.S. properties.


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