Refinancing Rental Property Explained

by Ravipal Atwal
Refinancing Rental Property Explained

Can you believe getting $300,000 for just extra monthly payment of $200/MONTH and then investing that money in a business which is generating between $10-15K/Month after paying all the expenses.

That should be amazing right? That’s what I just did a few months back.


Refinancing is one of the ways to grow exponentially, It’s your money and you take that out tax free. 

This is one of the ways rich people are getting crazy rich and we should understand and unlock these opportunities.

Let’s get to the business and talk about refinancing which I did at the start of this year in Jan, 2022.

I refinanced my property exactly after 4 years at the end of Term and I started the discussion with the bank around Sept 2021 and they took a good 3-4 months to do all the work. 

What documents are needed for me?

  1. My Notice of Assessments for the last 2 years.
  2. Properties current Income\Rents (Rent Roll) and Expenses like Hydro bill, Taxes, Insurance etc. For Income, they need a copy of actual leases or contracts signed with the tenants, plus the latest rent increase notices. 
  3. Also my all other properties income and expenses, not just the one I am refinancing. 
  4. Certificate of Location
  5. New Appraisal Report, which cost me around $1,000. Bank gave me a list of Appraisal companies and they went to the property, visited 5 apartments and gave a report which shows current property value.


Once the bank had all the numbers, they analyzed it and told me that they could give me up to $300K but payment was around $1,400 more. 

I had just 17 years of mortgage left for this property and they calculated my existing mortgage and new refinanced mortgage for the remaining 17 years which was the reason mortgage payment was going up which should be because I was taking out money.

But I didn’t want my payment to go up so much because then it kills all my monthly cash flow and also it would affect my future refinancing as well as I had to do more payments and no cash left from this property. 

I don’t know everything either guys, I just ask them what I want which is I don’t want to pay more money. 


So, the solution is we go back to Notary\Lawyer and sign the Mortgage papers again to push the remaining 17 years back to 25 years. 

Basically, It will take another 25 years instead of 17 years to pay my mortgage but I don’t care because I have a lot of time from my retirement point of view, I would rather take money now. 

It cost me another $600 to go back to Lawyer to change the mortgage papers and there you go, I have extra $300 and my payment just increased by $200 per month. 

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