Can I buy multiple homes with 5% down?

Can I buy multiple homes with 5% down?

The short answer is: yes. But there are some restrictions.

First of all, if you want to put the minimum 5% down to purchase a home, you will be subject to government scrutiny and fee. What I mean is that when you put less than 20% down, you are mandated to pay an insurance premium (ex. CMHC) and you are mandated to jump through the government hoops of the infamous stress test and other criteria.

So assuming you qualify, you can put 5% down on a home that you are going to occupy. If you already have a home that you are occupying, how can you buy a second home that you are going to occupy? A couple of ways: 1. You buy it as a second home, like a vacation property or a home for your children or other family member. This qualifies as owner occupied. 2. You move into the home and turn your existing home into a rental, and repeat. The advantage of this second method is that you can use the rental income to help qualify for the mortgage!