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How Do We Put The Mortgage Puzzle Together?


Diversifying A Rental Portfolio for Retirement Planning

Sharon and Daniel were referred to us by their realtor when they were looking to buy a rental property in Victoria. The couple are living happily up-island, with Sharon working in a long-term senior management role, and Daniel already semi-retired. They were selling their previous rental property, also located up-island, in order to diversify their real estate holdings.

Daniel and Sharon knew exactly what they wanted, as well as how much they were willing to invest up-front. They chose to cap their down payment at 20% – generally the minimum for a second property purchase – with the funds coming out of the proceeds from their sale, plus leveraging some of the equity in their primary residence.

In order for everything to line up with their financing, our team was able to coordinate both the refinance of their existing home to access that equity as well as the new mortgage for the purchase of the condo in Victoria. Since the loan to value for each mortgage is conventional, we were also able to secure 30-year amortizations that make the monthly payments fit in Sharon and Daniel’s budget.

Additionally, Daniel and Sharon were able to pay out a few smaller, high-interest debts with the funds from their refinance. Their credit histories were already good, but will only get stronger with the consolidation of their debts into a lower interest mortgage. Plus, their monthly cash flow is improved, giving them a bit more flexibility in their lifestyle.

As they prepare for their transition to retirement, Sharon and Daniel have set themselves up for some truly golden years. Their previous debts are rolled in to a lower interest mortgage that will save them money, both monthly and over the term of the payments. And their real estate portfolio is more robust with their happy home in a smaller city that suits their lifestyle and a lucrative rental in the heart of Victoria.

Does this situation sound familiar? You can contact us today to have the Auxilium Team working with you. Do you know someone who could benefit from the same great service? Refer a friend and we’ll see how we can work with them.

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