Published: May 30, 2017 • Last updated: October 22, 2020 at 8:48 am
Dear Ross, can I buy an investment property with a small down payment, like say five or ten percent only?
No, you are going to need at least a twenty percent down payment if you want to purchase an investment property. Not many of us have that kind of money sitting in savings accounts though.If you are already a homeowner, chances are you have enjoyed some pretty healthy growth in the value of your home in the past year or two. Consider tapping into your #equity and sourcing the rental property down payment there. Click To Tweet
Dear Ross, if I buy a house and I plan to rent out the basement to help with my bills, will the mortgage lenders qualify me for a larger mortgage because of the extra rental income?
The reality is most such homes around the GTA do not come with legal, conforming rental units, retrofitted to the Fire Code. As such, their income potential is irrelevant to your mortgage lender. It’s different if you are buying a legal duplex, triplex or quadplex, so be sure you ask your real estate agent whether or not the property you wish to buy conforms to code.
Dear Ross, if we buy a rental property, will my mortgage interest rate be as good as the one we have on our family home?
When it comes to rental properties some lenders factor in so many variables, we need all our fingers and toes to figure out all the possibilities. But to answer your question, no, the mortgage interest rate on a rental property will typically be a touch higher. For example:
Do you have any questions on Rental Properties for us? AskRoss how he can help.