I know this question has been asked before, but I can't find it and I know mortgage rules have changed since then anyways. I know I should ask a professional, but I'm lazy and don't want to waste a professionals time unless they volunteer time to be wasted by reading this thread.
Say I want to buy another house to live in and turn my current home into a rental. With a guaranteed tenant in my current house, as my parents as they want to move back to Calgary but don't want to purchase a home. General numbers here are approximate only to get an idea of whether or not a bank would mortgage this.
Current house value $450,000
Current Mortgage $225,000
Zero other debt
Other house value $450,000
Renovations needed $100,000
Household income $150,000 annually
Guaranteed rental income from parents $25,000 annually, if this were all approved by mortgage lender.
The only options I can think of is
A) Open a HELOC to use as a down payment on second house, and pay for some of the renovations
B) Parents "give" down payment money to us to use, and we HELOC the full renovations
Do either of these work with the new mortgage rules, and is there another option I'm not aware of?