Financing

Financing a property for Investment is far different from a standard Residential mortgage. Lenders want to know that the Investment can support the financing, so providing proof of income for a  property from rents is a key element in Investment financing. There can also be fees such a CMHC insurance when buying Investment properties with more than 5 Units.

Lenders will always require and appraisal if a purchase is not CMHC insured. Remember that an appraisal on a property that is considered commercial (ie: 5 living units or more) will cost far more than a standard residential appraisal as well. If there is any question as to the previous use of an Investment property, you can expect a lender to require an Environment Assessment to determine that there is no contamination of the lands, especially in the case where a property may have been used for any automotive, or industrial purposes in the past. That Environment Assessment is always at the cost of the borrower. It is wise to ask a seller if they are in possession of an assessment that could possibly be updated to save some cost.

You may also be faced with Lenders that charge fees to arrange Investment mortgages, but this is not always the case. As Mortgage Agents we review the property details to help us find the right lender based on whether you are investing in a residential home, a multi-plex apartment, or commercial space. Interest rates for uses other than Residential are generally higher.  There may even be situations where Mortgage Brokerage fees will apply to a transaction. We would discuss fees at the earliest possible opportunity in any event.

 

We know that applying for a mortgage is one of the biggest decisions you’ll make. We’ll shop over 50 Lenders using the power of Mortgage Intelligence to find the solution that suits your needs and comes in on budget.  You want the lowest rates and you’ll get them here.  Complete your mortgage application on-line 24/7 .