Rentals
A rental mortgage, also known as an investment property mortgage, is a loan specifically designed for purchasing properties that will be rented out rather than occupied by the owner. These mortgages typically require a larger down payment and may come with higher interest rates compared to traditional home loans, reflecting the increased risk associated with rental properties. Lenders often evaluate the potential rental income and the borrower's financial situation to determine eligibility. Overall, a rental mortgage can be a valuable tool for investors looking to generate passive income through real estate.
Why Choose CML to Purchase a Rental?
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Expert Guidance: Our team of experienced mortgage specialists is committed to helping home owners like you navigate the complexities of the mortgage process. We’ll help you understand your options, from interest rates to mortgage terms, so you can make informed decisions.
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Flexible Mortgage Options: Whether you're looking for a fixed-rate mortgage or a more flexible variable-rate option, we’ll work with you to find a mortgage that suits your financial needs and long-term goals. Our partnerships with various lenders allow us to offer competitive rates and terms.
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Step-by-Step Support: From your start to finish and beyond, we’ll be by your side. We offer personalized advice, respond quickly to your questions, and provide resources to ensure a smooth and stress-free experience.
What is Debt Consolidation​
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The standard minimum down payment for acquiring a rental property is typically 20% of the total purchase price. If you plan to live in one of the units (in the case of a multi-unit property), you might have the option of a lower down payment. For example, a mortgage backed by CMHC might allow a down payment under 20% for units that are owner-occupied.
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Many property investors prefer longer amortization periods to decrease their monthly financial responsibilities. The mortgage rates for rental properties usually are slightly higher than those for primary residences. The eligibility criteria set by lenders can vary significantly.
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It's crucial to consider your main objectives, available resources, and your knowledge about being a landlord. Investing in rental properties can be an effective way to generate extra income.
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Some risks associated with rental properties include variations in rental income, especially for short-term rentals. Additionally, certain regions impose strict regulations on short-term rental activities.
​Get Started Today
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Trust CML Canadian Mortgage Lender to discuss all the options that fit your needs and goals.
Contact us today for a free consultation and see where you can take your future.