| all investors can meet the strict requirements that go along with an insured mortgage on rental property.
These requirements include having a relatively high net worth and demonstrating that you can carry the mortgage payments in addition to your other debts without factoring in all of the rental income you will receive. This certainly doesn't leave room for many Canadians who want an investment property.
Another option if you have a good amount of equity in your principal residence is to take some of that equity out, typically through a line of credit, to get a big enough down payment that then may qualify you for a regular first mortgage.
Financing Made Easy To simplify the process, you can also now consider those lenders who have mortgage products specifically designed for small investors who own or are purchasing a residential investment property. Canadian investors can now access up to $500,000 without costly mortgage insurance premiums, or leveraging the equity in their principal home. Up to 85 per cent financing inclusive of applicable fees is available for single family units or up to a fourplex located in major urban centres. Properties on well and septic systems located in a town or subdivision can also qualify. Typically, 75 per cent financing is available for condominium units and all properties must generate a positive cash flow.
Perhaps now more Canadians can heed the wisdom offered by |
