Investment Property Mortgages Toronto
If you're looking for an Investment Property Mortgage in Toronto, Lending Super Store can certainly help. With various available options, let one of our knowledgeable Investment Propery Mortgage brokers help you find the right solution.
Did you know?
Since April 19th 2010, the Canadian government along with the mortgage insurers they have implemented a new requirement for all investment properties that Canadians have at least a 20% down payment on a rental property purchase. Although there are alternative lenders that will finance investment properties with as little as 15% down payment.
An investment property is one that is bought with the intention of making profit rather than being used as a residence. This can include investment properties bought and then renovated to increase thier value or purchased than rented or leased out to produce an investment income
Investment Property Mortgage Features
- Fixed, Variable and Adjustable Rate Mortgages are available
- Up to 80% LTV for a 1-4 unit Rental Property – or 85% LTV with alternative lenders
- Best mortgage rates offered
- Extended Amortizations: up to 35-years
Canada Investment Property Program
- Purchase or Refinance an investment property up to 80% LTV
- Competitive interest rates and NO brokerage fees*
- Have flexibility in payment options that comes with an extended amortization
- Purchase investment properties with simplified mortgage application process
- Enjoy the convenience of a blanket mortgage offering one mortgage and one monthly payment for two properties
- With 20% down payment no insurance fees are required
Debt Coverage Ratio Requirements
The requirement for debt coverage ratio varies from one lending institution to another. Some institutions will use rental off set for qualifying purposes, while other lending institutions will use 1.10% debt coverage ratio.
1.10% debt coverage ratio is arrived at by dividing the Net Operating Income by the Debt Service.
Rental off set is when a lending institution uses up to 80% of the rental income and off sets it against the P.I.T. Only the shortfall will be included in the Debt Ratio. If there is a rental surplus this will be added to the client's income. Assume a rental property with P.I.T. of $1500 and rental income of $2000. We will take 80% of the $2000 income ($1400) and deduct that from P.I.T. ($1500). We will only add the $100 shortfall to the Debt Ratio.
