Take a two year fixed rate every two years.
Prime will be 0.75% to 1% higher by 2020. Variable prime minus 1.25-1.4% by then.
Five year mortgages the most popular so they are always padded.
I now do two year fixed mortgages every two years on my houses or condos.
What is better: Cash-Flow or Maximum ROI ? http://myreinspace.com/threads/what-is-better-cash-flow-or-higher-roi.26596/
Cash-flow does NOT make you rich, but it allows a sustained ownership. Appreciation and mortgage paydown (by others) is where you get wealthy.
It’s like a three course meal ...
Necessary: yes ( in the bank’s eyes)
If bank gets the cheque they will lower your mortgage accordingly. Then refi with them or another bank.
Banks getting far more anal these days. Far tougher to get good rates without full re-qualification on each refi...
LOC is an extension of cash. It’s cash secured by an asset but it’s not free cash. With so called “prime” at almost 4% these days use it prudently. It may make sense for some deals but not others. Most SF houses do not cash flow 100% or even 75-80% levered. Do the math using prudent real world...
There is no rush. I’d start with my own personal residence in a location that suits your lifestyle. If a TH, duplex or house even then you can sublet. However a $500,000 asset in the Lower Mainland is likely a condo and as such, tough to sublet without inconveniencing your own life style. Plenty...
How much time, on avg, could you spend on finding, vetting and managing RE.
Are you open to other locations besides Lower Mainland, and if so where ?
Would you be ok in a house where the basement is rented to someone else ?
How far out would you consider for this given your work location ...
Markets not rising fast anymore anywhere in Canada so this refi strategy works mainly on re-development properties or over a longer period.
Example: a $400,000 asset with 2% annual value growth and a $300,000 mortgage or 25% down, in 5 years the asset is worth ~$440,000 and the mortgage about...
Cash is cash.
An LOC is like cash.
Once spent it’s gone.
The only way to “reuse” it is to buy a property and refi it a year or 3 or 5 later, either with a flat or ideally with a higher value, and pull cash out and then use that cash for more properties.