Rental Mortgage

rental mortgage



“Over 90% of all millionaires become so through owning Real Estate”
– Andrew Carnegie



Maximum Loans For A Rental Mortgage


Up to 80% LTV for properties with 1+ units (non-owner occupied). Borrowers who are employed or self employed (with 3rd party validation and proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 580 should qualify for a purchase with 20% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Borrowers with non traditional down payment do not qualify

Up to 95% LTV for rental a mortgage with 1-2 units, 1 unit owner occupied.. Borrowers who are employed or self employed (with 3rd party validation and proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 600 should qualify for a purchase with 5% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Borrowers with non traditional down payment (borrowed funds, line of credit, lender cash back) and a minimum beacon score of 650 also qualify for a purchase with 5% down. Self employed borrowers who do not have proveable income and less then 3 years of business operation can qualify with 10% down and a minimum beacon score of 650 can also qualify.

Up to 90% LTV for rental a mortgage with 3-4 units, 1 unit owner occupied. Borrowers who are employed or self employed (with proveable income for 2 years), have 2 years of clean credit, have 2 credit lines (credit card, car loan, line of credit) open for at least 1 year (on both lines) and a minimum beacon score of 600 should qualify for a purchase with 10% down. Provided their income supports their debt load and the down payment comes from a traditional source (savings, RSP, property, non-repayable gift from immediate relative. Not available to self employed with no 3rd party income validation.

Rental mortgage rates are usually 0.25% higher than owner occupied home mortgage rates.



How To Buy Multiple Rental Properties


The key to purchasing multiple properties is how the rental mortgage lenders calculate the property income and expenses. By deducting the expenses of carrying the rental property by the income generated from the property your debt load (from a lenders perspective) will often be unchanged compared with having the same income without the added expense of an additional property.  This allows the average person with a decent income to purchase multiple rental properties.


The 80% rental offset previously offered to calculate debt load on rental properties changed as of April 2010. Now, rental properties that are not the subject of the mortgage are close to 100% rental offset. 100% rental income less PITH (Principle, interest, property taxes, heat and condo fees) on the property. Rental properties that are subject of the mortgage can only use 50% of the rental income to qualify. However, property taxes, heat and 50% of condo fees can also be excluded.


Please feel free to call me if you would like to see if you would qualify for the purchase of rental properties.