Buying a vacation or rental property?
Real estate has been one of the most attractive investment categories in Canada for the past decade. If you are considering an investment in real estate, start by having a conversation with an experienced Mortgage Broker dealing in these types of mortgages who can explore some of the new options and great rates available today. Lending guidelines in the Canada are often more stringent when purchasing an investment property, cottage or second home.
When acquiring a second or third property, debt obligations on any other properties owned need to be taken into consideration. Many lenders consider certain cottage properties to be a little less liquid with values more volatile than properties in major urban centres. When purchasing rental properties another issue is that many lenders traditionally only use 50% of the rental income being earned to help qualify while including 100% of all mortgage payments, property taxes and heating costs. How is that fair? Policies vary vastly from lender to lender. Having my team shop around can open a world of possibilities and help you get the mortgage that you want and deserve.