Investment Properties
Buying An Investment Property Can Be A Great Opportunity
Buying real estate is one of the most popular additions to an investor’s portfolio. Investors are attracted to real estate for its long-term stability, high return on investment, and potential rental income. In recent years, the number of homes being bought for the purpose of investment, often for rentals, has exploded. According to recent statistics, one in four homes in Ontario and one in five homes in Canada are bought as investments rather than for a primary residence.
Are you thinking about buying an investment property?
Investing in income property can be a great decision and can provide you with extra income for years to come. But owning an income property is much different than owning your own primary residence; and getting a mortgage for rental property is much different than getting a conventional mortgage on your own home, too.
What is an Investment Property Mortgage?
An investment property mortgage is specialty financing that you receive for real estate investing purposes.
You’ll need to determine first if you’re actually dealing with an income property, an owner-occupied property, or a second home. A second home is much different than any kind of income property because its main intended purpose is to be enjoyed and lived in by the mortgage holder and their family. If you’re actually applying for a second home and not a mortgage for
investment property, you need to be very clear in saying so to your lender because you will need an entirely different mortgage.
If you are going to need a mortgage on rental property, you then need to determine if you’re going to live in the home with the tenants or if you’ll have your own home. If you’re the owner of a single-family home that you rent out, it’s likely that you’ll live in a separate house, in which you would need to apply for a standard rental property mortgage in Canada. However, if you’re going to own a duplex or triplex, and live within one of the units, you’ll need to apply for an owner-occupied mortgage, which is slightly different.
If you’re not going to be living in a portion of the residence and just need a mortgage for rental property, you’ll need to have a down payment of at least 20%, even if you plan on getting the mortgage insured through CMHC. However, if you’re going to live in a portion of the residence along with the tenants, you may be able to be approved for an owner-occupied mortgage with a down payment of only 5% – 10%. This will vary and as CMHC continues to reduce the amount of insurance it gives out, each borrower’s situation will be carefully scrutinized before insurance is approved.
Owning an income property can be a very prosperous and exciting thing; but applying for the mortgage for rental property can be a tedious and arduous chore. When you’re ready to boost your income and improve your real estate portfolio, contact our 911 Mortgage Brokers who can help you through the process, and really make sense of it all.
How 911 Mortgage Brokers can help
Let our 911 Mortgage Brokers guide you through your mortgage options in the journey to your next investment property. Whether it is a rental condo in the city, a detached rental home or a multi-residential building, we will explore your mortgage options and we will guide you, step-by-step, from approval to funding.
Our 911 Mortgage Brokers and Agents will match you with the right lender to fund your investment property. We will negotiate the lowest interest rates available in the market and find the most cost-effective financing solution to maximize your ROI, so you can enjoy your journey as an investor and start reaping the benefits.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation to discuss your options.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
