Region served
Refinancing a Grand Montréal property to invest: the interest can become deductible, but only if the money can be traced in a separate account from day one.
Rental income changes the picture, but every lender counts a different share: half added to income at one, the full amount netted against expenses at another. Same building, same leases, and the gap in borrowing capacity between two lenders can be tens of thousands of dollars.
Signed leases, the assessment roll and tax bill, the building’s actual expenses and your notices of assessment. If units are vacant or owner-occupied, say so from the start. The lender will calculate on market rent, not on the rent you’re hoping for.
As a rule you can refinance up to 80% of the value, minus what you still owe. A $500,000 home in Grand Montréal with $250,000 left on the mortgage works out to roughly $150,000, before you count the penalty for breaking the term.
Before comparing two monthly payments, add up what the change costs: the penalty, legal fees, the appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs is not a saving. Run the numbers for Grand Montréal first.
The interest can become deductible when the money is used to earn income, but only if everything can be traced. A separate account from the day of funding beats rebuilding the trail afterwards.
A lower monthly payment and a lower total cost are two different things. Stretching the amortization eases the budget now and adds years of interest, so compare both figures before you sign anything.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
Between 50% and 100% depending on the lender, and sometimes netted against expenses instead of added to income. On the same building, that gap moves borrowing capacity by tens of thousands of dollars.
Pick the situation closest to yours.
Contact
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.