Rental Property
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Financing for rental properties has changed significantly in the last number of years. Just 5 years ago, you could purchase an investment property with zero down and receive fully discounted interest rates.
Due to the tightening of lending guidelines it has become increasingly harder to qualify for a mortgage on a rental property. The good news is that I work with numerous lenders therefore have access to multiple products giving you the best opportunity to qualify for a rental property and at the same time receive fully discounted rates.
Today, rental financing lending criteria is drastically different than 5 years ago:
The ability to qualify for a rental property often depends on how much of the rental income the lender recognizes. The use of rental income varies considerably amongst the different lenders thus choosing the right lender matters more than ever, especially when there are multiple rental properties.
The maximum amortization with the "big banks" is 30 years however there are a few lenders that still offer a 35 year amortization. This can make a considerable difference on the monthly mortgage payment.
The lender you pick can have a major impact on your approval chances. By using my services you will have access to multiple lenders and more importantly my expertise which can sometimes make the difference between qualifying and not qualify for the mortgage.
Documents required for existing rental properties owned
Due to the tightening of lending guidelines it has become increasingly harder to qualify for a mortgage on a rental property. The good news is that I work with numerous lenders therefore have access to multiple products giving you the best opportunity to qualify for a rental property and at the same time receive fully discounted rates.
Today, rental financing lending criteria is drastically different than 5 years ago:
- A minimum of 20% down payment is required
- Some lenders require a 25% down payment or higher for rental properties
- Certain lenders bonus the interest rate for rental properties
- Many lenders now require the rental income to be claimed on your income taxes in order to use the rental income
The ability to qualify for a rental property often depends on how much of the rental income the lender recognizes. The use of rental income varies considerably amongst the different lenders thus choosing the right lender matters more than ever, especially when there are multiple rental properties.
The maximum amortization with the "big banks" is 30 years however there are a few lenders that still offer a 35 year amortization. This can make a considerable difference on the monthly mortgage payment.
The lender you pick can have a major impact on your approval chances. By using my services you will have access to multiple lenders and more importantly my expertise which can sometimes make the difference between qualifying and not qualify for the mortgage.
Documents required for existing rental properties owned
- Copy of most recent mortgage statement confirming mortgage details (ie interest rate, payment frequency, payment amount).
- Copy of most current property tax statement
- Confirmation of strata fee amount if applicable.
- Copy of rental agreement.
- 2012 and 2013 T1 generals including statement of real estate activities form also known as T776 tax form. This form is used by rental property owners to report their rental income and expenses for income tax purposes.
