Investment and Rental Property Mortgages
Highlights
- Fixed, Variable and Adjustable Rate Mortgages Permitted
- Very good rates (very close to best if not best)
- Up to 80% LTV for a 1-4 unit Rental Property
- Extended Amortizations: up to 35-years
With the Investment Property Program, borrowers can:
- Purchase or Refinance an investment property up to 80% LTV
- Benefit from competitive interest rates and NO application fees
- Enjoy the payment flexibility that comes with an extended amortization
- Purchase an investment property in a cost-effective manner
- Enjoy the convenience of one mortgage and one monthly payment
Traditional - 20% Down Payment Investment Property Mortgages - With a minimum 20% down payment, purchasers have many options available to them when buying investment/rental property.
- What is the cost for Mortgage Insurance? With 20% down, the mortgage is conventional and no mortgage insurance is required.
Best Rental Product
- Basically, if you have 20% to put down, have good credit and income, you may qualify for a 30 year amortization.
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.
Debt Coverage Ratio
- The requirement for debt coverage ratio varies from one lending institution to another. Some institutions will use rental off set for qualifying purposes, while other lending institutions will use 1.10% debt coverage ratio.
1.10% debt coverage ratio is arrived at by dividing the Net Operating Income by the Debt Service. Rental off set is when a lending institution uses 70% of the rental income and off sets it against the P.I.T. Only the shortfall will be included in the Debt Ratio. If there is a rental surplus this will be added to the client’s income. Assume a rental property with P.I.T. of $1432 and rental income of $2000. We will take 70% of the $2000 income ($1400) and deduct that from P.I.T. ($1432). We will only add the $32 shortfall to the Debt Ratio.
Call us today to get started with a Mortgage Solution that fits your lifestyle, Telephone (416)855-5952.
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