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Refinancing a Bas-Saint-Laurent 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 everything, but each 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 capacity between two lenders runs into the tens of thousands of dollars.
Signed leases, the assessment roll and the tax bill, the building’s actual expenses, your notices of assessment. If units are vacant or owner-occupied, say so up front. The lender calculates on market rent, not the rent you are hoping for.
The usual ceiling is 80% of the value, less your balance. Take a $500,000 home with $250,000 left to pay: about $150,000 available. Then subtract the penalty if you’re breaking the term.
Before comparing monthly payments, add up what the change costs: penalty, legal fees, appraisal, loan setup costs.
The interest can become deductible when the funds are used to earn income, but only if the trail is spotless. A separate account from closing day beats rebuilding the trail afterwards.
Don’t confuse a smaller monthly payment with a cheaper mortgage. A longer amortization helps the budget today and costs you years of interest. Compare both figures before signing.
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.