I heard the rules in Canada have changed in the past couple years and you need a 20% down payment to get a rental property. Please read my below scenario to see if you can give me some advice.
I legally do not own my house, I rent. My parents own my house so I have no landlord issues, the house is paid off so the rent that I give them is part of their retirement, and the house is left to me in their will. So I have ZERO intention on moving. My parents get a discount on their house insurance because it's not just a "tenant" living here it's family.
I do want to buy a property though. I have $10, 000 saved up for a down payment and I thought I only needed the 5% putting my budget in the $200,000 range. Here's the catch. I plan on renting it to other family as they are sick of nightmare landlords. I know they are decent tenants as they rented property off of my parents before, so I am not worried about that. I am worried about getting approved for a mortgage!
I was thinking of just lying and saying I will live there, but then how will I maintain my renters insurance at the house I actually live at? Does anyone know or have ideas on how I can pull this off?
Read more: How much of a down payment needed for an investment property (that family will live in) in Canada?
