Investment in property is one of the most lucrative and preferred option for Canadians who look to put their money into good use with high return potential. The investment provides a steady monthly income and an appreciated return value over time.
Investment Property Mortgage Features
- A viable and simple method is to use equity in your current home to buy an investment property.
- The number of units as well as your occupancy factor determines what kind of financing you can get.
- 1-4 units building are categorized as residential, and financing for it is different and difficult than the regular mortgage on the principally owned home
- 5+ units building fall under commercial category, and therefore financing for them is more complex. For such property investment you can avail commercial mortgage, which entails high interest rate and difficult qualification criteria.
- For a multi-unit property, financing and down payment is determined whether you will occupy a unit or will rent out the whole property.
- For investment property financing; fixed, variable as well as adjustable mortgage rates are available
- For down payments more than and equal to 20%, the borrower gets 30-year amortization period, but with added premium of 0.25%.
Down Payment Conditions
- For unit size 1-2 having owner occupied condition, the down payment is 5% and maximum LTV is 95%
- For unit size 3-4 having owner occupied condition, the down payment is 10% and maximum LTV is 90%
- For unit size 1-2 without owner occupied condition, the down payment is 20% and maximum LTV is 80%
- For unit size 3-4 without owner occupied condition, the down payment is 20% and maximum LTV is 80%
Benefits of Investment Property Mortgage
- The extended amortization gives payment flexibility.
- With an investment property, you can have monthly income along with your mortgage installment, thus lesser financial burden.
Golden Financial quote the best lenders and lowest rate possible in a speedy and hassle-free manner, providing a complete list of competitive rates. With us, owning a property for a futuristic financial benefit is an easy and reliable affair.