A Bank Decline Isn't the End: What It Really Means and What to Do Next

Josh Perez • May 6, 2026

Watch the video that inspired this post: Should you invest in a home or an investment property first?


The Question Everyone Gets Wrong

If you've been trying to figure out whether to buy your first home or your first investment property, you're asking a question that trips up a lot of people. It feels like a fork in the road — like you have to pick one path and leave the other behind.


Here's the truth: that framing is the problem.

Most people treat this as an either/or decision. Either you buy a place to live, or you buy a property to generate income. But there's a third option that most people never consider — and it's the one I recommend to a lot of my clients.


The Middle Path: House Hacking

The strategy is called house hacking, and it's simpler than it sounds. Instead of choosing between a home and an investment, you buy a property that functions as both.


Think about it this way: what if you bought a duplex, a triplex, or a home with a legal basement suite? You live in one unit. You rent out the other. Your tenants help cover your mortgage. You're building equity, generating income, and putting a roof over your head — all at the same time.


I've helped hundreds of buyers in Ontario use this exact approach to get into the market sooner than they thought possible. It's not a loophole. It's just smart planning.


Why This Strategy Works in Ontario

Ontario's real estate market is competitive. Prices in many cities make it difficult to qualify for a home on a single income — let alone save enough for a second investment property down the road. House hacking changes the math.


Here's what makes it especially powerful:

1. Lower Monthly Carrying Costs

When you rent out part of your property, that rental income offsets your mortgage payment. In some cases, your tenants can cover a significant portion — or even all — of your monthly costs. That's a very different financial picture than carrying a mortgage entirely on your own.


2. Increased Buying Power

Here's something most people don't know: when you purchase a property with a rental suite, many lenders will add a portion of the projected rental income to your mortgage application. That means your borrowing power goes up — sometimes enough to qualify for a property in a neighbourhood you thought was out of reach.


3. You're Building Wealth From Day One

Every mortgage payment builds equity. Every dollar of rental income reduces your out-of-pocket costs. And over time, the property appreciates in value. You're not just buying a place to live — you're acquiring a cash-flowing asset.


Who Is This Strategy Right For?

House hacking isn't for everyone, and I want to be clear about that. It works best for buyers who are comfortable being a landlord, who are open to living in a multi-unit property, and who want to accelerate their path to financial independence.


It's also worth noting that not every lender treats rental income the same way. The rules around how much income can be used, which property types qualify, and how your file needs to be structured can vary significantly. That's exactly where having the right mortgage professional in your corner makes a difference.


"The home-versus-investment debate is a false choice. Buy a property that does both — and let your tenants help you build your future." — Josh Perez


The Bottom Line

You don't have to wait years to save for an investment property after buying your first home. And you don't have to sacrifice homeownership to start building a portfolio. The right property, structured the right way, can give you both.

If you're curious whether this strategy could work for your situation, I'd love to walk you through the numbers. Every buyer's file is different, and a 30-minute conversation can give you a lot of clarity.


Ready to explore your options? Schedule your free consultation today and let's figure out the smartest path forward for you.

Josh Perez
GET STARTED
Modern navy kitchen with marble island, pendant lights, and a vase of white flowers

When Waiting to Buy Real Estate Actually Makes Sense (And When It Doesn't)

By Josh Perez • May 6, 2026
Is waiting for lower rates the right move? Learn when holding off on buying a home in Ontario actually makes sense — and when it's quietly costing you money.

Breaking Down the Real Costs of Homeownership

By Josh Perez • May 6, 2026
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.