Investment Rental Mortgages
Since April of 2010 the Federal Government has tightened up the mortgage rules for Investment and Rental Mortgage. The minimum down payment now required is 20% of the purchase price or appraised value (whichever is lower). As well they have reduced the amount of rental income that can be used to offset the expenses for the debt ratios. All of this has resulted in lenders becoming cautious about having too many Investment or Rental properties on their books.
As a mortgage broker, we can help navigate this changing landscape to find the lenders who still have an appetite for investment and rental properties. We have access to lenders who will let us use up to 80% of the rental income to offset the expense and will allow an estimate of economic rent in place of a Lease Agreement or a T1 General showing rental income. As well lenders are looking to limit the number of rentals one can own before it becomes a commercial file. We still have access to lender who do not place a limit on the number of rental properties that you own.
With the changing rules each lender is putting in for investment and rental properties we can make getting a mortgage for an investment or rental property easier by having access to a large number of lenders to ensure we match you with the best lender for your situation.