Yes, generally the qualification process is simpler if you plan to reside in the property you are purchasing.
Yes, if you plan to purchase a property that consists of more than 4 units, you would be required to apply for a commercial mortgage. The process and qualification criteria for a commercial mortgage is much stricter than a residential mortgage. If you purchase property with under 4 units the mortgage would be much easier to be approved.
Yes, most lenders will consider a percentage of the rent you will earn in future, but not the total amount of the income.
If you are purchasing a property with more than 4 units, you would be approved for a commercial mortgage. This will have a higher interest rate charged and possibly include different terms than a residential mortgage. Under 4 units will generally be similar rates and terms.
Yes, if one of the suites are going to be owner occupied the approval process will generally be easier. The big difference is that most lenders will require a smaller down payment if you are planning to occupy one of the units as your principle residence.
No, some lenders do not offer this financing option. Your mortgage broker will assist you in recommending the best lender to approve a mortgage to buy an Investment Property.
In some instance CMHC default insurance would be required depending on the amount of down payment you have and if you will occupy the property as your residence.
There are several things that lenders will consider in determining your down payment. For example: If you are purchasing a property strictly for investment purposes and will not occupy any of the units, most lenders will require a 20% down payment. If there are one or two units, and the purchaser will occupy one suite, some lenders will require a 5% minimum down payment. This rises to 10% if the property has three to four units. Speak to your mortgage broker to determine the current lending regulations based on your situation.
Our team is devoted to helping you achieve your long term goals. Enjoy options and possibilities that you may not have considered when sticking with traditional banking products. If your goals include paying down your mortgage faster or looking for a rental income to make some headway on your amortization we are happy to discuss all of your options. Your Kelowna Mortgage Broker is able to help you with your first mortgage or renegotiating the terms on an existing property. Call John Antle Mortgages in Kelowna today and let’s get started!