Mortgages For Investment Or Rental Properties
The purchase of property for investment purposes requires a significant amount of planning to ensure that not only will the investment make sense but also to ensure that the mortgage financing is structured to appropriately address this unique type of investment. Rental properties and the mortgages on these properties have specific tax implications and advantages. As a result of this you will likely benefit from having your mortgage structured quite differently here vs. how your mortgage is structured on your primary residence.
The Approval Process For The Purchase Of A Rental Or Investment Property
The criteria and guidelines that the banks and insurance companies use when determining if an applicant will be approved for the purchase of a rental or investment property differs from how mortgage applications are reviewed for the purchase of a primary residence. This is in part the result of the rental income that will be coming in each month and can be used to offset the expenses associated with carrying the property (e.g. mortgage payment, property taxes, strata fees, maintenance, etc.).
Please Note:
Even within this category of mortgage product (mortgages for rental/investment properties), banks and insurance companies have different guidelines that each implement, so a decline at one bank can be an approval at another or vice versa.
Contact Maury for the help and recommendations needed to ensure your financing is structured property for your investment or rental property.
