acquiring an Investment Property
Buying a property and renting it out can be a good way to steadily build wealth. Whether you're looking to acquire a condo, house, multi-unit property to add to your investments, planning a successful venture starts with understanding your mortgage financing options.
There are unique aspects to financing rental properties: mortgage lenders typically expect a down payment of at least 5% if the mortgage is insured and 20% for a conventional mortgage. Another option is to draw on the equity from another of your properties. What many prospective buyers don't know is that there are lenders that will allow up to 80 per cent of monthly rental revenue as "other income" when approving a buyer for financing.
An Invis mortgage advisor can introduce to you to your mortgage financing choices and can offer guidance on the ins and outs of financing investment properties. In addition, your accountant can advise on the tax implications and risks involved in your investment, and your realtor can help with collecting sound information about local rental and real estate markets.
