Owning an income property can be quite the profitable investment. But before you commit, take the time to gain a clear understanding of the steps for financing and the responsibilities you would obtain. Research, research, research. It’s important to understand why exactly investing in an income property would be beneficial to you.
We are here to help you with that research.
Why buy an income property?
- Real Estate is still a long-term investment
- Property values have been historically more stable than stock market
- A source of monthly income, if you do not have a monthly shortfall
- There are some tax deductible expenses
What are types of income property are approved?
- Single-family dwellings
- Town homes
Most lenders allow applicant to hold a maximum of 4 rental properties. Holding more than 4 rental properties is considered commercial business.
Basics of down payment for investment properties:
- Most lenders require 25% -35% for down payment
- If between 20-25%, the mortgage will need to be insured for default with CMHC/Genworth/Canada Guaranty and a premium will be added to the mortgage
- Down payment cannot be borrowed or gifted
- Must provide proof of down payment (30 to 90 day account history)
As a one-stop shop at BrokerSmart, we are here to assist you with your investing needs. If you want to obtain more information and/or have any questions, please give us a call at 604-588-4466 or email us at firstname.lastname@example.org