Investment Property Mortgage
“Are You Looking To Improve Your Monthly Cash Flow?”
You may be surprised to learn that you don’t need to be making 6 figures to own a second property. The core of owning more than one home is developed through the art of market knowledge, determination, and financial planning! Please read below if you’re planning to purchase a second home with the intention to rent.
- The minimum required down payment for a rental property is 20% of the purchase price. Like any property, you can access up to 80% of your home’s current equity to fund your down payment towards that rental property.
- Where you can generally use 100% of your rental income on your primary residence, only a portion of the rental income from a secondary property can be used for qualifying purposes. Most lenders will accept 50% of the rental income added to yours, while other lenders will allow upwards of 80% of the rental income while subtracting your expenses. Because of the additional cost, this may impact what you can afford.
- While you will secure the markets best rates with less than 20% down or over 35% down on any purchase of 1 million or less, rental properties will usually come with a premium in interest rates. This premium can be anywhere from 0.10% - 0.30% on your standard 5-year fixed insurable mortgage.
But wait, what if you are looking for an investment property but you do not have the full 20% down? In some cases, by purchasing your second home with less than 20% down, you are able to turn your current property into that desired investment property, while making your new purchase your principal residence. You will be limited to 1-4 units per rental property and can extend your amortization period up to 30 years.
While rental income from the property can be used to debt service your mortgage application, it’s important to remember that some lenders will have a minimum liquid net worth requirement outside of the property. Additionally, all rentals will be subject to a capital gains tax on any profits made when the time comes to sell. You will also need to have your down payment ready (whether that is from your savings or your home equity). This includes a minimum credit score of 680 and you will be subject to qualifying guidelines proving you can financially carry both mortgages.
Contact us at Riley Boychuk Mortgages to learn more about how you can secure your next investment property today.
Services offered by Burnaby Mortgage Broker
- Home Purchase Mortgage
- Refinance & Debt Consolidation Mortgage
- Mortgage Pre-Approval
- Mortgage Renewals & Transfers
- Purchase Plus Improvement Mortgages
- Mortgage For Vacation & Second Home Properties
- Mortgage Rate Negotiation
- First Time Home Buyer Mortgage
- Mortgages For Self Employed
- Mortgage Calculator
- Home Equity Loans
- Home Equity Line of Credit (HELOC)
- Bad Credit Mortgages
- First Responder Mortgages
- Reverse Mortgages
- HOME PURCHASE MORTGAGE Purchasing a home is often one of the biggest financial decisions one may make in their life.
- Refinance & Debt Consolidation Mortgage Do you want to tap into some of your hard earned home equity? Well, did you know that you can borrow up to 80% of your properties current market value!
- MORTGAGE PRE-APPROVAL A mortgage pre-approval is an initial fundamental step in the home buying process helping you secure today’s very best rate.
- MORTGAGE RENEWALS & TRANSFERS If you’re planning to renew your mortgage with your current lender, you are likely leaving opportunities to save money on the table.
- Purchase Plus Improvement Mortgages Have you just fallen in love with your forever home, but it needs work? Well, we at Riley Boychuk Mortgages have got a solution for you.
Investment Property Mortgage You may be surprised to learn that you don’t need to be making 6 figures to own a second property.
- Mortgage For Vacation & Second Home Properties With as little as 5% down you could own your very own second home today.
- Mortgage Rate Negotiation It’s very simple, we provide each of our clients with the markets best rates, best products, and the very best service from start to finish.
- First Time Home Buyer Mortgage As a First Time Home Buyer, get started today with one of our mortgage experts and save a pile of cash.
- MORTGAGES FOR SELF EMPLOYED If you’re a business owner or self-employed, we have lending solutions for you at the markets most competitive rates.
- MORTGAGE CALCULATOR Have you ever wondered how you could save thousands of dollars on your mortgage while becoming mortgage free up to 7 years sooner?
- HOME EQUITY LOANS If you have built up equity in your home, a home equity loan will provide you a large lump sum of cash right at your fingertips.
- Home Equity Line of Credit (HELOC) Similar to home equity loans, a home equity line of credit (HELOC) uses the built-up equity in your home as a secondary source of funds...
- Private Mortgage Financing If you’ve got bad credit or more built-up debt than you would like, we have a solution for you!
- FIRST RESPONDER MORTGAGES As a valued First Responder, you are entitled to today’s very best rates with cash back incentives.
- REVERSE MORTGAGES It is said that almost 8 in 10 Canadians that are over the age of 55 report saying that they can’t solely rely on their registered savings plans...