Canada Rental Mortgages

home mortgage financing

Maximum Mortgages For A Rental Property in Canada

Up to 80% LTV for properties with 1+ units (non-owner occupied). Borrowers who are employed or self employed (with 3rd party validation and proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 580 should qualify for a purchase with 20% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Borrowers with non traditional down payment do not qualify

Up to 95% LTV for rental a mortgage with 1-2 units, 1 unit owner occupied. Borrowers who are employed or self employed (with 3rd party validation and proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 600 should qualify for a purchase with 5% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Borrowers with non traditional down payment (borrowed funds, line of credit, lender cash back) and a minimum beacon score of 650 also qualify for a purchase with 5% down. Self employed borrowers who do not have proveable income and less then 3 years of business operation can qualify with 10% down and a minimum beacon score of 650 can also qualify.

Up to 90% LTV for rental a mortgage with 3-4 units, 1 unit owner occupied. Borrowers who are employed or self employed (with proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 600 should qualify for a purchase with 10% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Not available to self employed without 3rd party income validation.

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How To Buy Multiple Rental Properties in Canada

The key to purchasing multiple rental properties in Canada is how the rental mortgage lenders calculate the property income and expenses. By deducting the expenses of carrying the rental property by the income generated from the property your debt load (from a lenders perspective) will often be unchanged compared with having the same income without the added expense of an additional property. This allows the average person with a decent income to purchase multiple rental properties.

Apply online today to see if you would qualify for the purchase of rental properties.