How much can I borrow for investment property?
If you are looking to purchase an investment property the maximum amount that you can borrow is 80% of the value of the property, the minimum required down payment is 20%. These are firm rules when it comes to investment properties in Canada.
Investment property calculator
In order to calculate how much you need for a an investment property, you don’t require a calculator. Now, if you are looking to see how much of a property you can purchase, what the maximum mortgage amount would be for an investment property – a calculator might be helpful for you. The big issue that you will find is the accuracy of any calculators that you come across. Your trusted mortgage broker would be a far better source to obtain accurate numbers. The reason for this is that there are different programs available through different lenders depending on the specifics of the situation. It is very difficult for a calculator to be built that will take these many different nuances into consideration.
A good mortgage broker will be able to provide you with a fairly accurate number of the maximum range of a mortgage for an investment property, that you can qualify for. Your mortgage broker will need to know more about your income and your monthly payment obligations along with an estimation of how much you can rent the property that you are looking at for.
How much can I borrow against my rental property?
To begin to answer this question, you must first determine how much you have already borrowed against your property. No matter if your property is one that you are living in, or if it is a rental property, the maximum amount that you can finance (or re-finance) is 80% of the market value of the property. The amount of equity that must remain in your rental property (or residential property) is 20% of the market value.
What are loan requirements for investment property?
The loan requirements for an investment property are similar to that of a regular mortgage. It is also dependent on whether you own a primary resident or not, and how many properties that you own. One of the major benefits of working with a mortgage broker, is the relationships and access to different lenders. There are lenders who have special programs that may be suitable for your situation.
Another thing to consider is property type. If you are looking at a multi-unit property, and are considering living in one even (although it is not necessary), units of 4 plus type properties, then there is a program for an insured mortgage available through CMHC where you can put as little as 10% down and qualify.
Your mortgage broker is a good reference and source for information for you to see if this type of purchase makes sense. The policies and the guidelines are fairly specific, and you should be able to get the information fairly easily during your initial consultation, that is free of charge.