Client story · Real estate strategy
Mortgage broker Lindsay Brascia of Mortgage Solutions shared this real client story with us, a strategy many Port Moody homeowners don't realize is possible: using equity from your current home to purchase another property with minimum down payment, without selling.
The Scenario
These homeowners owned a Port Moody townhouse valued at approximately $1.3M with an outstanding mortgage balance of $700,000. They wanted to purchase an investment property but didn't want to sell their home or wait years to save a down payment.
The Strategy
By refinancing their existing townhome, they accessed a portion of their equity and used those funds toward a second property. The new purchase was structured as a "second home," which allowed them to qualify for minimum down payment. That property was later converted into a rental with a great tenant.
They kept their townhome, left as much equity in their principal residence as possible, and actually lowered their monthly payment, even after taking more funds.
The Numbers
Before Refinance
| Item | Amount |
|---|---|
| Property value | $1,300,000 |
| Mortgage balance | $700,000 |
| Home equity | $600,000 |
| Monthly payment | $3,731.66 |
| Rate / amort. | 4.99% / 27 yr |
After Refinance
| Item | Amount |
|---|---|
| Property value | $1,300,000 |
| New mortgage | $755,000 |
| Remaining equity | $545,000 |
| Monthly payment | $3,547.56 ↓ |
| Rate / amort. | 3.90% / 30 yr |
New Investment Property
| Item | Amount |
|---|---|
| Purchase price | $650,000 |
| Down payment (6.15%) | $40,000 |
| CMHC insurance premium | $24,400 |
| New mortgage amount | $634,400 |
| Monthly payment | $3,234.71 |
| Rate / amort. | 3.70% / 25 yr |
What Did This Cost?
The refinance itself cost roughly $2,500–$3,500 in legal and administrative fees. The CMHC premium was rolled into the new mortgage. Net result: two properties, lower combined monthly payment on the original home, and a rental generating income.
Is This Right for You?
This strategy works best when your Port Moody property has appreciated significantly and you have stable income to service both mortgages. It's not for everyone, but for owners sitting on equity and wanting to grow their portfolio, it's worth a conversation with both a mortgage broker and your realtor.
Every situation is different. Reach out if you want to think through whether this approach makes sense for your specific property and goals.