top of page
  • Writer's pictureAutumn

House Hacking 101

In the current era of elevated interest rates, considering relinquishing a low interest rate if you bought or refinanced in the last few years, may seem challenging. However, there's an alternative—house hacking—a not-so-new but increasingly popular idea.

The premise of house hacking revolves around leveraging your home as a means to scale up, improve, and/or accumulate wealth. Here's how it typically unfolds:

First, you purchase a home to live in as your primary residence (your current dwelling). You reside in it as your primary residence for at least one year (a requirement for most loans).

Afterward, you can transition it into an investment property while retaining your original loan, resulting in cost savings. How? Well, if you were to purchase a property explicitly as an investment, you'd need a larger down payment compared to a primary residence loan, and you'd face a higher interest rate.

With your new tenants covering your mortgage, you now have the financial flexibility to acquire a new home.

This is one simple scenario of many. Not everyone wants to become a landlord, understandably. Just remember, there are various ways you can use your low interest rate to your advantage and to continue to build equity!


bottom of page