Real Estate Investment
Grow your portfolio with the right financing. Investment property rules are different. Knowing them is the starting point.
The Basics
Any property you won't be living in as your primary residence requires at least 20% down, no exceptions, no default insurance. This applies to single-family rentals, condos used as rentals, and vacation properties with rental intent.
For 1–4 unit properties where you occupy one unit, different rules apply. You may qualify with as little as 5% down on owner-occupied small multi-unit properties.
Five or more units is considered commercial and moves into a different qualification framework entirely.
No insured mortgage option for investment properties. Must be conventional.
Lenders add a percentage of gross rental income to your qualifying income. The exact add-back varies by lender and property type.
Investment properties are stress-tested the same as owner-occupied: at the greater of 5.25% or your contract rate plus 2%.
Strategies
Rental income expands your purchasing power. Kyle structures applications to maximize the add-back allowance by matching you to lenders with the most favourable rental income treatment for your specific property.
Duplexes through 4-plexes can be financed with conventional residential mortgages. Owner-occupancy of one unit often enables insured financing, dramatically reducing the required down payment.
Buy, Renovate, Rent, Refinance, Repeat. Kyle works with clients executing this strategy, structuring the acquisition mortgage, refinance timing, and equity pull-out to optimize each cycle.
Interest on mortgages used to earn income, including rental income, is generally tax-deductible. Structuring your mortgage correctly maximizes this deduction. This is especially valuable for high-income earners.
Get Started
Not sure if this applies to your situation? One call usually gives you a clear answer.
