After being in their home for a few years the Vandusen’s had a child and 1 more was on the way. They out grew their condo faster than they thought and needed more space. Their property value hadn’t gone up as much as they would have liked so there wasn’t enough extra cash available for down payment on a house if they sold their condo.
Down payment savings begin:
The Vandusen’s had to get creative to build their down payment.
They moved into Rose’s parents basement where they could live for free … and found tenants to rent out their condo. This allowed them to save a significant sum every month. After 18 months the Vandusen’s were able to place a little over 5% down payment on a home in their price range.
Alex had a growing salary as a senior manager of a retail store.
Rose was working as a teacher however was caught in a loop of layoffs by the school board, this was frowned upon as technically she wasn’t guaranteed a position back.
Rental income for the Port Coquitlam condo needed to be factored into the application but many lenders would not accept a large portion of the rent as income.
The end result:
We located a mortgage lender that would factor in a large amount of the rental income they were receiving from their Port Coquitlam condo and accept Rose’s teacher income.
The Vandusen’s now happily live in a home with a nice garden in the back yard and in a great neighbourhood for the kids to grow up in. They also are holding onto the Port Coquitlam condo which is being rented by tenants and assisting them with a retirement nest egg.
Read about the Vandusen’s first home purchase here: The Vandusen’s Buy Their First Home