Closed in 2022 · Published October 18, 2026
- Residential
- Prime lender
- Purchase
- Investment property
- Rental
- Equity take-out
- Value
- about $310,000
- Mortgage
- about $210,000
- Loan-to-value
- about 67%
- Total debt-service ratio
- about 42%
- Rate in 2022
- 5.30%, five-year adjustable, 30-year amortization
The Situation
A single client living with family, who already owned a rental property in Vernon, was buying a second rental there: a two-bedroom townhome valued at about $310,000, expected to rent for about $2,000 a month.
The Challenge
The client works full time as an office administrator on about $45,000 a year, and in October 2022 had taken equity out of the first rental, enlarging its mortgage. Two rental mortgages had to fit on one modest salary.
The Solution
In 2022 we placed about $210,000 with the same major Canadian bank, about 67% of the value, on a five-year adjustable term at 5.30% with a 30-year amortization. Under the bank's rental policy the townhome's property tax, strata fees and heat counted at $1 each, the total debt-service ratio came to about 42%, and a 795 score with every account paid as agreed carried the file.
The Outcome
The down payment, about a third of the value, came from that equity, about $140,000 net, and the client now owns two Vernon rentals.