Buy a house, rent it to pay the mortgage, then use a loan against it to buy another house, rent that house out to cover the mortgage, repeat.
Now you’ve got multiple income properties and real estate in the last 20 years has grown in value quickly.
No bank should ever allow this to happen as they’re giving out highly correlated loans, but the backs don’t really do much verification beyond asking if the down payment comes from debt to which you can say no.
I genuinely don’t understand, maybe because I’m an immigrant from a place where housing issues are very different from Canada.
Is owning a rental property generally considered a “get rich quick” scheme?
It’s often presented that way.
Buy a house, rent it to pay the mortgage, then use a loan against it to buy another house, rent that house out to cover the mortgage, repeat.
Now you’ve got multiple income properties and real estate in the last 20 years has grown in value quickly.
No bank should ever allow this to happen as they’re giving out highly correlated loans, but the backs don’t really do much verification beyond asking if the down payment comes from debt to which you can say no.
Makes sense. Thanks.