Buying an Income Property
Interested in buying an income property?
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.
I’ve provided some information below to help you get started.
If you are interested in finding out if investing is right for you, contact me and I’d be happy to assist you.
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 applicant to hold a maximum of 4 rental properties. Anything over is considered a commercial business.
Basics of Downpayment for investment properties:
- Most lenders require 25% -35% for downpayment.
- 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.
- Downpayment cannot be borrowed or gifted
- Must provide proof of downpayment (30 to 90 day account history)
An investment property is a big commitment for you and your family. I’m here to help you figure out if it’s the right move for you!
As a professional mortgage broker in one of Canada’s largest Mortgage Broker Networks, I have access to an array of lenders and products that may suit your needs. Don’t hesitate to contact me for a meeting.
