INVESTMENT PROPERTIES

In the past, it was difficult to qualify for a mortgage on a revenue property unless you had a substantial down payment. We now have mortgage options to make it possible to purchase an investment property for as little as 10% down.

Some key features include:

Up to 90% Loan-To-Value for a 1 to 4 unit rental property

Good rates

Fixed or variable rate mortgages

Extended amortizations up to 35 years

RENTAL INCOME
The treatment of rental income from the property will vary widely from lender to lender. Here are two ways a lender could treat the rental income from an investment property:

1. A percentage of the rental income is added to the borrower’s income. This is the more conservative approach to using rental income for qualification purposes. With this method, qualifying for a mortgage to purchase a rental property will require a much higher income for the borrower.

2. A rental offset. With this approach, the rental income is treated as a deduction from your mortgage payments. The percentage rental offset may vary from between 50% to 90%. This will depend on the lender's policies, whether the mortgage is an insured mortgage, and your overall credit.

If you are a Non-Resident looking for an investment property, the mortgage options available to you are different. Take a look at our information on Non-Residents for your options.

Contact one of our Mortgage Agents today to learn more about your investment options!