Re-fi and future mortgage qualifying advice


New Forum Member
Hi REIN team,

I’m refinancing my property and deciding whether to take the additional equity credit as a 2nd mortgage with the lender (Scotia). I plan to purchase an additional property this year and wondering if having two mortgages with the same lender will hinder my ability to qualify for the next mortgage?

The other choice is a new mortgage including the additional credit. In this case, I’d have the single mortgage, but the rate offered is 30 basis points higher.

Any feedback would be much appreciated! Thanks

Michel Lafleur

Frequent Forum Member
REIN Member
If you put a 2nd mortgage on your current property, those 2 mortgages combined will be used in the debt coverage ratios when you go to apply for the next mortgage. You'd be better off with 1 morgage (refinance) over havinga 1st + 2nd mortgage. Whichever has the lowest monthly debt service costs (presumably having the 1 refinance mortgage only), that'd set you up for the highest chance of approval for the next place.