Investment Property Mortgages
The average Canadian homeowner knows at least two things. One, something major will break on the same day as the entire family is coming over, and two, real estate is a great investment. For a lot of Canadians, their home is their best performing investment in their portfolio. Home equity has been increasing all over Canada. Now more than ever homeowners are experiencing the financial wisdom behind investment properties.
Who Wants To Make Some Money?
Residential real estate won’t make you rich overnight but it’s still a solid long-term investment. Experts recommend that you charge enough in rent to pay for your mortgage. Then once the mortgage is paid off the rent is pure profit. Keep in mind that expenses related to your real estate investments are tax deductible.
Living Large In Your Golden Years
Tacky cruise wear isn’t cheap. You want to live out your golden years in style and comfort. One way to do that, even if you already have a pension, is with investment properties. They can be an excellence source of retirement income. While you’re playing shuffle board your properties can be making you money.
Be Your Kid’s Landlord.
When your kids go off to college they’re going to need a place to live. So why not make their “home away from home” your home too. Buy an investment property that caters to college students. Your offspring cannot only live there, thus saving you money, but you can rent it out to other students which will help you pay the mortgage. Sorry though, we have no idea how to get beer stains out of carpet.
Help With Your First Home
So far we’ve been talking about buying a second home as a solid long-term investment. However, a duplex or triplex is a terrific option for first-time home buyers. The rent from excess units can help pay the mortgage. Then, once you’re in a better financial position, you can pull the trigger on your dream home.
Rules for Investment Property Mortgages
There are quite a few rules for investment property mortgages and many have recently changed. For example, you now need a minimum down payment of 20% and you can only use a Canada Mortgage & Housing Corporation (CMHC) lender for your first four properties. Speaking of CMHC, they’ve recently altered the way they do business which can make it more difficult to qualify for a loan. With so much to know, and most of it confusing, you definitely need the assistance of an experienced mortgage planner.
If you already own a home you know how confusing the process can be. Unfortunately, your experience doesn’t make buying an investment property any easier. No worries though because knowledgeable mortgage planners are eager to help you purchase a second residential property and/or obtain an investment property mortgage. Remember, seeing a broker is free and obligates you to nothing. Whether you’re serious about investing in residential real estate, or you just have a few questions, you need to meet with an experience mortgage broker today!