How I Financed My First Investments
Tip #1: Get as many lines of credit approved prior to obtaining your first mortgage. I know individuals with more than $100K in personal lines of credit which can essentially fund an entire down payment in some markets.
Tip #2: If you are going into the bank and doing a credit check for a personal line of credit, you might as well get a credit card. If they were going to give you $20K P.LOC, you can sometimes also get a $10K or $20K credit card. Wait 6 months, go back to the bank and tell them you don’t want the credit card and to convert that borrowing capacity into a personal line of credit. You will now have $30–40K available P.LOC.
Tip #3: (not applicable to all) if you have a BBA or Bcomm or are a CPA, CA National Bank will easily give you about $20K unsecured personal line of credit at prime + 0.5% which is basically the rate that you would get on a HELOC. (Its an amazing offer and everyone should take advantage of it).
Tip #4: Purchase with 5 or 10% down even if you have the 20% for the down payment (unless you are required to go 20%). The CMHC fee is well worth it and consider it a cost of business. It allows you to keep your capital safe and, on the side, to be reinvested into another project.