Investment Property Mortgages

Looking at an investment property? Invest in the right mortgage (through us).

Finding the perfect mortgage fit for an investment or income property is the difference between a headache and a smile. You've come to the right place — better mortgages are our specialty.

Whether you're purchasing a property for rental income or the future resale of the property, or both — for this type of mortgage, you'll need at least a 20% down payment.

Our expert, salaried True North Mortgage brokers can help sort through the details and outline flexible solutions that work for you. We access many lenders on your behalf, not just one, to find the right mortgage product for your situation.

Plus, we pass along our volume discount to provide your best possible rate. Even a fraction lower can end up saving you thousands over the term of your mortgage, and help set you on the right path to your real estate investment success.

With over $20B in funded mortgages, and over 15,000 5-star client reviews, we're standing by to provide you with unbeatable service.

Invest with confidence — we're here to help. Contact us, or apply online now to start your easy, stress-free mortgage experience. There's no cost to you, and no obligation.

Here's what your investment property mortgage can do for you

• Provide options for fixed and variable-rate mortgages
• Allow competitive rates, though lenders may charge a small premium
• Give you up to 80% Loan-to-Value (LTV) for a 1-4 unit rental property
• Offer extended amortizations up to 30 years

We'll help you invest in flexibility and savings for your better mortgage:

• Purchase or refinance your investment property up to 80% LTV
• Benefit from our competitive interest rates and NO application fees
• Appreciate the payment flexibility that comes with an extended amortization
• Get the right help to purchase your investment property in a cost-effective manner
• Enjoy the convenience of one mortgage and one monthly payment

Related: Want to buy your Airbnb? Here's the info you need to know about buying your investment getaway.

Why is your investment property mortgage referred to as 'traditional'?

A traditional mortgage has a minimum 20% down payment — and therefore doesn't need mortgage default insurance. Also referred to as a conventional mortgage, it means that you'll have more options and flexibility, compared to a high-ratio mortgage that requires insurance and comes with higher premiums.

How are your mortgage rates affected with a property investment?

Many lenders will offer their best rates with a small premium. Our expert True North Mortgage brokers will check with many accredited lenders (not just one) and pass along our volume discount to get you the best rate for your situation.

What about your amortization?

If you have 20% to put down, have good credit and income, you'll likely qualify for a 30 year amortization (depending on the lender), which can help lower your payments. We'll quickly help you determine your best options.

A note about net worth

The requirement for a minimum net worth varies from one lending institution to another. Most lending institutions do not have a minimum net worth, however some require that you have a minimum $100,000 net worth per rental property.

Don't forget about Debt Coverage Ratio requirements

The requirement for Debt Coverage Ratio (DCR) varies from one lending institution to another. Some institutions will use rental offset for qualifying purposes, while other lending institutions will use a 1.10% debt coverage ratio — arrived at by dividing the net operating income by the debt service.

What does rental offset mean? A lending institution will calculate 50%-70% of the rental income and off-set it against the principle, interest and tax mortgage payments (PIT) you would make on the property. Any rental 'shortfall' of this calculation will be included in the Debt Ratio, and a rental 'surplus' would be added to your net worth.

For example, assume a rental property with a PIT of $1432 and rental income of $2000. Then take 70% of the $2000 income ($1400) and deduct that from the PIT ($1432). The shortfall of $32 is then added to your Debt Ratio.

We can help answer any questions, and take care of the details for you.

Take a walk through the mortgage park — with us. You'll be glad you did.