Invest in Rental Property Sooner Than You Think
Did you know, rental and investment properties in Canada give you the opportunity to purchase a property with as little as 20% down or refinance up to 80% of the value of the property?
The Experience to Give You the Best Advice
If you are thinking of getting into real estate investment and looking to purchase a rental property in Kingston, I can help you make that dream a reality and secure some of the lowest rental property mortgage rates in Kingston. With several years of experience as a mortgage broker, I’ve helped many investors receive a rental property loan.
BEST FINANCIAL DECISION
Investment Property Mortgages in Kingston
Choosing to purchase an investment and rental property is one of the best financial decisions you can make. Investment property loans are some of the lowest mortgage rates available in Kingston. For as little as 20% down, you can receive a maximum loan value up to 80% for rental properties with 1-4 units. If the property has more than 4 units, the cost goes up slightly but is still competitive.
Kingston Rental Property Program
Simply put, the best kind of rental property to purchase is one that can carry its debt and expenses. In an ideal situation, you qualify for the lowest invest property loan interest rate if the property has no more than 4 units inside. In addition to lower interest rates, our investment property mortgage program offers several other benefits as well including: extended amortization and no hidden fees!
How to Get Rental Property Loans
If you would like to get a rental property loan in Kingston, the easiest and most convenient way is to work with a licensed mortgage broker who’s experienced in rental property mortgage. There are many options to consider and every investor is different. For instance, you can get up to 4 through an “A” lender. However, after 4 properties, you will need a residential investment property mortgage which carries a slightly higher rate.
If you have built up a lot of equity in your principle residence, you can refinance your home mortgage to get the cash for the down payment on your new rental property. Again, it’s often best to speak with a mortgage broker who has the experience and expertise to find a solution that meets your needs.
If you would like to learn more about investment property mortgage rates, please contact me today for assistance.
You may also be considering turning your current house into a rental property, which can be a wise decision in Kingston. Feel free to visit our blog if you’re unsure if you should rent or sell your house.
Rental Property Mortgage FAQs
In general, it is easier to get a mortgage for a primary residence than for a rental property as lenders consider primary residences less risky.
In addition to covering the 20% down payment required for the mortgage, you’ll want to add up the closing costs and the costs of any repairs or modifications that need to be made prior to renting. You’ll want to research rental rates for similar options in the area to ensure that you can cover the cost of the mortgage with room for repairs and vacancies that may come up. If you have a primary residence, you can often borrow up to 80% of your home’s value to finance rental property.
Types of rental properties are single family homes, condos, townhouses, multi-unit residential buildings and commercial real estate. Single family homes and condos are typically the best option for first-time investment property owners. Single family homes tend to attract financially stable, longer term renters while condos have low maintenance costs as the condo association typically manages all the repairs except those inside the condo. When it comes to single family homes especially, smaller is often better than larger as larger homes typically have higher taxes and maintenance costs. If you’re thinking purely in terms of return on investment and you are able to take on the burden of higher maintenance costs and managing multiple renters, multi-unit residential buildings are often the best investment option.
Interest rates for rental property mortgages in Canada can vary depending on factors such as your credit score, the amount of your down payment, and the type of property you are purchasing. Generally, rental property mortgage rates are higher than rates for primary residence mortgages.
The amount you can borrow with a rental property mortgage in Canada will depend on factors such as your income, credit score, and the value of the property. You can typically borrow up to 80% of the property’s value, but you may be able to borrow more if you have a larger down payment.
Yes, you can use the expected rental income from the property to help qualify for a rental property mortgage in Canada. Lenders will typically require documentation of the expected rental income and may also factor in a vacancy rate and other expenses associated with owning and renting out the property. Work with an experienced mortgage broker in Kingston to get competitive mortgage rates.
Owning a rental property in Canada can have tax implications, both in terms of rental income and capital gains when the property is sold. You may be able to deduct expenses related to owning and maintaining the property, such as mortgage interest, property taxes, and repairs. It is recommended that you consult with a tax professional for advice on your specific situation.
Buying a rental property in a different province or territory in Canada can have additional considerations, such as different regulations and tax laws. It is important to research the specific rules and regulations in the province or territory where the property is located, and consider working with a local real estate agent or lawyer who is familiar with the area. If you are a beginner rental property investor, purchase rental properties that are 1-2 hours away from you. It will be a learning process to manage and run the property, be a good landlord, and then purchase properties in other provinces. Mortgage broker Leo Ragusa can help you get approved for rental properties across Canada. For more details, contact Leo.
No, a rental property mortgage cannot be used to purchase a vacation home in Canada. Rental property mortgages are specifically designed for properties that will be rented out, and lenders may require documentation showing that the property will be rented out on a full-time basis.
The length of the amortization period for a rental property mortgage in Canada will depend on the lender and the type of mortgage. Generally, rental property mortgages have shorter amortization periods than traditional mortgages, with typical terms ranging from 15 to 25 years.