Mortgages for investors
If you are thinking about investing in a rental property, we can help. In recent years lenders have expanded the selection of mortgage products available and some lenders even offer their best rates on income generating properties.
Up to 95% mortgage financing is now available on all purchases of qualified rental properties up to 4 units. You can refinance your existing rental property up to 95% of its value. The rental income that you generate can also be used to help you qualify for your mortgage needs. Insurance premiums (CMHC, Genworth, AIG) apply to mortgage with less than 20% down. If your down payment is at least 20% of the value of the property, there are lots of options available to you without the insurance premium.
Typically lenders will require the following documentation from clients that are purchasing or refinancing an investment property:
- Proof of Income – All declared employment or investment income must be confirmed
- Confirmation of rental income confirmed with rental lease agreements or in some cases an appraisers opinion of rent.
- Proof of down payment on deposit from non borrowed sources and 1.5% of the purchase price available to cover the costs of closing the transaction.
- Individuals will be required to meet the lender's credit history and credit score requirements
- A real estate appraisal.
- A completed application that we will assist you with.
Being an informed landlord is critical to the success of operating a rental property. The Residential Tenancy Act of BC governs residential tenancies, including landlord obligations. Please review the Guide to Residential Tenancy in BC, and print a copy for your renter as well.
Rental agreement forms are also available as well as other forms for rent increases, tenancy termination etc.
