A strategic approach is required for Mortgages for investors in Canada. Most beginner investors don’t understand this and often start off on the wrong foot. What I mean by that is someone who starts off buying their first property often goes to the bank where their primary mortgage is. This is often not advisable as the bank mortgage representative often does not deal with mortgages for investors in Canada. Typically, they work with just first time or move up buyers. They cannot advise you on mortgages for rental property and they may limit your options for future purchases.
Which Lender to Work with for Mortgages for Investors in Canada
You need to deal with a mortgage broker who specializes in working with mortgages for investors in Canada. They will have a strategic order to finance your deals. You need someone that has a portfolio approach to mortgages so you are not limiting your options in the future. What I mean by that is each Lender has their own guidelines as far as mortgage qualification for rental properties. Most of them have a cap on the number of investment properties each person can own.
So for example, it might be better to start getting mortgages with smaller lenders (perhaps B lenders) and then start using the larger A lenders after that. An investor focused mortgage broker is definitely recommended for further advice on structuring your portfolio for optimal financing. So before you purchase your next property, keep this in mind when getting qualified for mortgages for investors in Canada.
So until next time, happy Canadian Real Estate Investing.
Jose Jafferji, REIA
Your Real Estate Investment Advisor