A property can make sense on its own and still leave you short of cash or flexibility for what comes next. Before choosing its mortgage, review the purchase alongside your existing mortgages, property expenses and portfolio goals.
Start with the outcome you want. More income, less pressure on monthly payments and capital for another investment can lead to different financing decisions. Another purchase is not always the next step.
Budget for the purchase and the money needed afterwards
Separate the money needed to complete the purchase from the money you want to keep available afterwards. Closing costs, planned work and a reserve belong beside the down payment in that discussion.
If you are considering borrowing against your home, understand the new obligation as well as the available funds. Your home secures that borrowing, and failure to repay can put it at risk. Appraisal, legal and other costs may reduce the amount left for your plans. Our equity guide shows the difference between property equity and funds available after a refinance.
The borrowing assessment should show the funds remaining after transaction costs and the additional payments you would need to make. Those figures determine how much the borrowing contributes to your purchase budget and ongoing expenses.
Complimentary Financing Roadmap™
From your goals to a financing plan.
Tell us your goals
We start with what you want to achieve, when you want to act and your priorities for the years ahead.
We review your finances
We examine your income, properties, mortgages and available funds alongside your purchase or investment plans.
Receive financing recommendations
We explain the options, costs and trade-offs, then outline the steps needed to arrange the recommended financing.
There is no charge for this advisory process. Mortgage financing is subject to the lender’s assessment and approval.
Review the new mortgage alongside your existing mortgages
Your income, existing debts, rental properties and proposed purchase belong in the same assessment. A lender’s treatment of rental income can affect the result; rent received is not automatically the amount counted for qualification.
Describe what you expect to do during the mortgage term. A sale, refinance, renovation or extra payment introduces different questions about costs and flexibility. Compare those features alongside the rate rather than discovering their limits when you need to make a change.
Match mortgage repayment to the cash you can afford
Paying down debt can support your goals, but the payment schedule needs to fit the cash available to you.
Accelerated biweekly payments are more than a change of payment dates. They total the equivalent of an extra monthly payment each year. Check that additional commitment against your budget. Lump-sum payments and increases to regular payments are subject to your contract’s privileges; exceeding them can trigger a penalty.
For a rental portfolio, decide what cash must remain available for the properties before committing it to extra mortgage payments.
Request a financing plan for your properties and next purchase
Bring your proposed purchase, short- and long-term goals, and the mortgages already in place. Streetwise reviews how the new financing would affect the properties you own and the money available for future plans.
Streetwise’s complimentary Financing Roadmap™ starts with your goals, reviews your financial circumstances and property plans, then explains financing recommendations and the steps to pursue them. Explore the Financing Roadmap™ process.
If your main question concerns the financing already in place across your holdings, explore a Portfolio Financing Review.
