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Investment Properties

Thinking about building wealth through real estate? Investment properties can be a smart way to diversify your portfolio and create long-term income.


What You Need to Know:

  1. Down Payment Requirements:
    Unlike primary residences, investment properties typically require at least a 20% down payment.
  2. Rental Income Calculations:
    Rental income can help you qualify for a mortgage. We’ll show you how lenders assess this and maximize your purchasing power.
  3. Financing Options:
    Whether it’s a traditional mortgage or a more creative solution, we’ll find the right fit for your investment goals.



Common Questions About Investment Properties:

  • Can I use equity from my current home?
    Yes, you can! We’ll guide you through refinancing or using a HELOC to fund your purchase.
  • What are the tax implications?
    From capital gains to rental income, we’ll help you understand the basics so you can make informed decisions.


Let’s make your real estate investment journey a success.

FAQ’s for Investment Property Purchases

  • What is the minimum down payment for an investment property?

    Investment properties typically require a minimum down payment of 20% of the purchase price.

  • How does rental income affect mortgage qualification?

    Lenders may consider a portion of your expected rental income when determining your mortgage eligibility, which can increase your borrowing capacity.


  • What are the tax implications of owning an investment property?

    Rental income is taxable, but you can deduct expenses like mortgage interest, property taxes, and maintenance. Capital gains tax applies when you sell the property at a profit.


  • Should I buy a property in my name or through a corporation?

    Owning property personally is simpler and may offer tax advantages for small-scale investors. Holding properties in a corporation can provide liability protection and potential tax benefits for larger portfolios.

  • What financing options are available for investment properties?

    Options include conventional mortgages, home equity lines of credit, and private lending. Each has its own terms and qualification criteria.

  • What is the difference between a fixed and variable mortgage rate for investment properties?

    A fixed-rate mortgage has a constant interest rate throughout the term, providing stability. A variable-rate mortgage can fluctuate with market conditions, which might offer savings but comes with more risk.


  • How do I calculate the return on investment (ROI) for a rental property?

    ROI can be calculated by dividing the annual net income (rental income minus expenses) by the property's purchase price and multiplying by 100 to get a percentage.

  • What are the responsibilities of being a landlord in Canada?

    Landlords must maintain the property, adhere to provincial rental laws, handle tenant issues, and ensure the property is safe and habitable.

  • How can I finance multiple investment properties?

    Options include refinancing existing properties to access equity, securing lines of credit, or working with lenders specializing in investment property financing.

  • What is a cap rate, and why is it important?

    The capitalization rate (cap rate) is a metric used to evaluate the profitability of an investment property. It's calculated by dividing the net operating income by the property's current market value.

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