Hi everyone,
I have a few questions and was hoping those with experience could give me some ideas on how/what I should be doing.
My financial situation looks like this:
I am 29 and currently am federally employed, 55k/year
I have a 180k home with 60k mortgage remaining,
26.5k TSFA
13.5k RRSP
63k cash
I don't have any debts besides my mortgage, and a 13,100 credit limit but I pay my card of in full every month.
I would like to buy, renovate, refinance and rent out single family homes - I live in Manitoba, homes can be bought fairly cheap still - 120k and fixed and refinanced for roughly ~170, with rents to support. I realize I only have so much money so I feel that this would be the way to make it go the farthest.
My own mortgage is up for renewal, as of early Aug it has converted to an open variable.
I am unsure of what my next steps should be. Should I pay down my mortgage significantly - a number that I am comfortable with is paying it down to 27k (this allows me to still have money in the bank) and then pay off the remainder over the next 2-3 years - and with doing so, get a readvancable line of credit - have been in talks with BMO about their Readiline (?) product.
BMO has explained to me that I am able to access 65% of the houses value (max 117k once fully paid off) with this HELOC
Or should I keep the cash out of the mortgage and just have it there ready and pay down the 60k over the next 5 years or so?
I would like to get started with investing (currently have none), and would like to figure out my own finances and get them ready so that when the opportunity comes up, I have my finances structured and ready to go!
Thank you in advance for the advice, thoughts and opinions!
I have a few questions and was hoping those with experience could give me some ideas on how/what I should be doing.
My financial situation looks like this:
I am 29 and currently am federally employed, 55k/year
I have a 180k home with 60k mortgage remaining,
26.5k TSFA
13.5k RRSP
63k cash
I don't have any debts besides my mortgage, and a 13,100 credit limit but I pay my card of in full every month.
I would like to buy, renovate, refinance and rent out single family homes - I live in Manitoba, homes can be bought fairly cheap still - 120k and fixed and refinanced for roughly ~170, with rents to support. I realize I only have so much money so I feel that this would be the way to make it go the farthest.
My own mortgage is up for renewal, as of early Aug it has converted to an open variable.
I am unsure of what my next steps should be. Should I pay down my mortgage significantly - a number that I am comfortable with is paying it down to 27k (this allows me to still have money in the bank) and then pay off the remainder over the next 2-3 years - and with doing so, get a readvancable line of credit - have been in talks with BMO about their Readiline (?) product.
BMO has explained to me that I am able to access 65% of the houses value (max 117k once fully paid off) with this HELOC
Or should I keep the cash out of the mortgage and just have it there ready and pay down the 60k over the next 5 years or so?
I would like to get started with investing (currently have none), and would like to figure out my own finances and get them ready so that when the opportunity comes up, I have my finances structured and ready to go!
Thank you in advance for the advice, thoughts and opinions!