Owning a rental property can be a profitable investment - but it's not for everyone.

It’s important to do the research needed to have a clear understanding of the steps in financing an income property and all the responsibilities that will come with an investment.

Why purchase an investment property?

• Real Estate is still a great long-term investment
• Property values have been historically more stable than the stock market
• A source of monthly income, if you do not have a monthly shortfall
• There are some tax deductible expenses

What are approved Rental Property Types?

• Single-family dwellings
• Town homes
• Condos
• Duplexes
• Triplexes
• Fourplexes

Most lenders allow an applicant to hold a maximum of 4 rental properties. Anything over is considered a commercial business.

Basics of Down Payment for investment properties:

• Most lenders require 25%-35% for a down payment.
• If between 20-25%, the mortgage will need to be insured for default with CMHC/Genworth/Canada Guaranty and a premium will be added to the mortgage.     
• Down payment cannot be borrowed or gifted.
• Must provide proof of down payment (30 to 90 day account history).

An investment property is a big commitment for you and your family. We are here to help you figure out if it’s the right move for you!

As professional mortgage brokers in one of Canada’s largest Mortgage Broker Networks, we have access to an array of lenders and products that may suit your needs.

For more information, contact us today!