Question about real estate investing in Ontario, Canada

My plan is to buy another home and rent out my current residence. However I don’t have much equity or cash for the down payment on the new home. My initial strategy was that I would open a heloc on the current home and use that for the dp on the new home.

However I recently learned you must keep 20% in the home and even then you can only access equity (principal that’s been paid) in the home. I only put 10% down on the property when I purchased so waiting until it gathers another 10% and then another 80k (20% of 400k) in equity before I can access the heloc puts a damper on my plans.

Is there something I’m missing perhaps that can help me pull money out of my current home so I can use as down payment on the new one? Thanks for any help.

submitted by /u/jordan3j
[link] [comments]

My plan is to buy another home and rent out my current residence. However I don’t have much equity or cash for the down payment on the new home. My initial strategy was that I would open a heloc on the current home and use that for the dp on the new home. However I recently learned you must keep 20% in the home and even then you can only access equity (principal that’s been paid) in the home. I only put 10% down on the property when I purchased so waiting until it gathers another 10% and then another 80k (20% of 400k) in equity before I can access the heloc puts a damper on my plans. Is there something I’m missing perhaps that can help me pull money out of my current home so I can use as down payment on the new one? Thanks for any help. submitted by /u/jordan3j [link] [comments]

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