Investment Property Mortgages

• This process is completed by refinancing your home.
• Many homeowners will refinance their home for a variety of reasons, some of which include saving on interest rates, consolidating high interest debt, completing home renovations, investments, and more.
• Through the process of leveraging your equity, we can show you the strategies to earn additional income through investments without having to use your savings.
• Ultimately, it comes down to a numbers game, as we aim to maintain or improve your current mortgage payment and set you up in an investment that helps you grow your net worth over time.

• The first step is to give us a call or click the “Apply Now” button to get started & one of our real estate professionals will reach out with everything you need to know.
• It’s easier than it sounds. First, we need to establish how much equity you have in your home by assessing your homes current market value and factoring in any debts like your mortgage and any consumer debt that you may want to consolidate.

Nope!

• We’ll arrange for an appraiser to advise on what’s called an ‘economic rent’. This report is an estimation of rental income that you can expect your property to rent out for.
• It’s that easy!

• It all comes down to risk exposure from the lens of a lender.
• One key factor that lenders consider includes the possibility that you might one day have to cover part of or the entire monthly mortgage payment given a vacancy occurs.
• Lenders also factor in the general wear and tear of a tenant occupying a home. From a lender’s perspective, they also consider the priority a borrower may place on their primary homes mortgage payment over the rental property’s mortgage payment if you were to get sick, lose a job, or go through a financially challenging time.
• Depending on the lender, a typical increase in rate for a rental property will be between 0.10% and 0.25%.
• While this premium may not be attractive, simply increasing your 25-year amortization to 30-year can result in lower monthly payments and positive cash flow.

Eligibility typically involves credit score, debt-to-income ratio, rental income potential, and financial stability. Requirements may vary among lenders, so consulting with a mortgage advisor is advisable.

Now there are THREE ways to look at this.

• Are you looking to purchase your next property as the rental property? Or
• Are you looking to purchase your next property that has a rental component in which you will occupy one unit yourself? Or
• Are you looking to turn your current home into the rental property and purchase your next property as an owner-occupied home?

If you are buying a property for the purpose of an investment, 20% of the purchase price is required as your minimum down payment.

If you are planning on moving into the property as your owner-occupied home, you will require the minimum 5% down on the first $500,000 & 10% on the next $500,000, up to $1,000,000.

Investment Property Mortgages can finance various property types, including single-family homes, multi-unit residential buildings, condominiums, and commercial real estate. The choice of property type depends on the investor's strategy and financial goals.

Maximise returns by selecting properties with strong rental potential in desirable locations. Efficient management of expenses, regular property maintenance, and staying informed about market trends are also crucial for optimising investment property returns.