Rental and Investment Properties

Investment Property Mortgages

Highlights

1) Amortization periods up to 35 years, with Variable and Fixed Rate Mortgages Permitted

2) Great Rates, quite close to the best rates possible

3) Loan to Value ratio of 80% on 1-4 unit Rental Properties

The Investment Property Program for Borrowers:

1) The convenience of one mortgage and one monthly payment. You can purchase an investment property in a very cost-effective manner

2) Benefit from competitive interest rates and no application fees

3) Have payment flexibility when you extend your mortgage by Refinancing or purchasing an investment property. This product allows for a LTV up to 80%

20% Traditional Down Payments on Investment Mortgages

If clients are able to put a minimum of 20% down, purchasers will have a large variety of mortgage options available to them. Conventional mortgages with 20% down, no Mortgage Insurance will be required.

Mortgage Rates and Rental Products

Most Lenders will offer their best rates. Also, if you have good credit, a solid income, with 20% or more to put down, you will qualify for a 35 year amortization mortgage.

Net Worth

The minimum requirement for net worth will vary depending on the lending institution. Some institutions will offer a 1.10% debt coverage ratio, and others lenders will rely on a rental off set for qualifying purposes. The debt coverage ratio of 1.10% is calculated by the Net Operating Income divided by the Debt Service.

When a Rental off set is used by lender it refers to using upwards of 70% of the rental income and off-setting it against the P.I.T. (Principal, Interest, and Taxes). Only the shortfall gets included into the debt ratio, while a rental surplus gets added back to the client's income. For instance, let's assume the rental property has a rental income of $1800 and the P.I.T. is $1324. We calculate 70% of the $1800 income, totaling $1280. The $1280 is deducted from the P.I.T. of $1324. The remaining $44 is considered a shortfall and will be added to the Debt Ratio.



Richmond Mortgage Brokers

  • Cash Back Mortgages
    Cash-back mortgages were more popular prior to the last economic downfall, the 2008 financial crisis. While they have not been completely written off as a worthy mortgage option, there are still some property owners that choose this option. ... More
  • Construction Mortgage Options
    Options on Construction Mortgages Currently, there are a few kinds of construction financing available. Though building a home can be quite a complicated endeavor, your mortgage should be quite simple. There are 3 categories within ... More
  • Why Equity Based Mortgages?
    For those prospective home owners who are unable to prove income or have a damaged credit history, an equity based mortgage can be a great option. If you currently have equity in a home or you can provide a large down payment, you may still be ... More
  • Plan For First-Time Home-Buyers
    Purchasing a new home and securing a mortgage is a huge commitment and is one of the most important financial decisions your will ever make. It is greatly beneficial that the process can be simplified. In order for you to get your mortgage ... More
  • HELOC or Home Equity Line of Credit
    A Home Equity Line of Credit is the process of using your homes equity to get a secured line of credit. With a HELOC, you can use this equity to be used for another purpose. For instance, these funds may be used to purchase a new vehicle or to ... More
  • Mortgages For The Self-Employed
    CMHC and Genworth both recognize the unique challenges that are faced by self-employed Canadians. Genworth and CMHC offer mortgages loan insurance options for borrowers that are self-employed in order to help clients realize their dreams of ... More
  • Mortgages for Newcomers to Canada
    CMHC and Genworth offer special financing options to borrowers with permanent residence status and non-permanent status. These newcomers to Canada help to increase the nation's positive population growth and have also created a wider variety of ... More
  • No Income Verification Mortgage
    The no income verification loan was quite popular a few years ago. These mortgage products gave the borrower the opportunity to purchase a mortgage without providing any income verification, so long as they had a favorable credit score. These ... More

Richmond Mortgage Brokers

Richmond Mortgage Brokers
Richmond, British Columbia

Phone: 778-732-0181
Email: