Get HELOC out of your rental unit

[reinvtoronto]

Hi guys!



I have a question about getting HELOC out of my rental unit.

When you get HELOC out of your rental unit. What is it based on? Is it based on the rent or your income?



I would like to maximize money I got from HELOC who should I ask to get approval?



Thank you!

 

[Thomas Beyer]

It is based on appraised value, yet rarely over 65% LTV. To get more you need to get a mortgage, up to 80% LTV.

 

[reinvtoronto]

Thank you Thomas!



So in order to get appraisal to make the most of it, do you ask Bank to do that or Mortgage broker will do it for

better appraisal?

 

[Thomas Beyer]

First get a general opinion based on estimated value and current income from a mortgage broker, on HELOC or mortgage. Then chose an appraiser accepted by that bank. Then you order & pay for appraisal in parallel to mortgage/HELOC application together with income statements from asset and your own personal networth statement (RRSPs, cash, other assets, all debt such as mortgage or credit cards, income, ...)

 

[bizaro86]

[quote user=ThomasBeyer]It is based on appraised value, yet rarely over 65% LTV. To get more you need to get a mortgage, up to 80% LTV.




I've received multiple helocs on rentals at 80% LTV. However, I've only been able to do that by working with a chartered bank directly. Maybe some brokers can do that also, but I haven't found one.



Regards,



Michael

 

[Dan Golby]

I was able to get 75% LTV on my rental property but now that I'm getting stretched a bit I had to come up with 25% down for my most recent purchase (which came from my principal residence HELOC)



Maybe one more before I need to start using JV money.