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Is Buying a Student Condo for my Child a Good Investment?

September 12, 2018 | Posted by: Kelleway Mortgage Architects

buying student condo

Is Buying a Student Condo for my Child a Good Investment?

My daughter is starting university this fall, and rents are high enough that I'm considering buying a condo for her instead, which could become an investment property after she graduates. Are there any programs that can help us make this ambition a reality?

 

Absolutely! Genworth Canada's Family Plan Program is a perfect fit for situations like yours. The program enables Canadians to help immediate family members attain the security of homeownership, with as little as five percent down. Not stressing over rent will allow your daughter to focus on her studies and extracurricular activities, allowing her to make the most of her university education.

 

Other suggested applications of this program include parents buying a home for an entrepreneurial adult child, or an adult buying a property for elderly parents on a fixed income.

 

How It Works

Apply just as you would for a typical mortgage, subject to the standard income and employment verification, as well as credit bureau score checking.

 

Your down payment can be as little as five percent of the property purchase price and can be funded from your personal resources, such as your savings, an RRSP withdrawal or equity from your existing property.

 

All qualifying applicants must be on the property title, including the resident; in this case, that would be your daughter.

 

One Caveat

Genworth Canada's Family Plan Program doesn't include non-owner­occupied properties, which means that converting the condo into an investment property after your daughter graduates won't be an option. Instead, encourage her to stay put (who doesn't need a little help as they enter the workforce?), or refinance the remaining mortgage once she's ready to move out.

 

 

 

 

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