Share
Mortgagenomics Canada
Rental Property Mortgages | Investors flooding market? | Going long on rates | Real Estate & Currency
Ep. 80
•
Rental Property Mortgages - how to qualify for them.
Qualifying for a mortgage when purchasing or refinancing a rental property can get really confusing.
- the minimum down payment to qualify for a rental property mortgage ranges from 20% to 35% (refinances are limited to 65% of the appraised value)
- rental income generated from the property does not necessarily translate into direct qualifying income. 50% to 95% of the rental income is eligible as qualification income (varies radically from lender to lender)
- the rental income eligibility is classified as either one of the following (depending on the lender and type of income):
- General Qualification Income (least preferred): the mortgage balance is maintained in the application and becomes part of the overall debt load that needs to be serviced for qualification purposes
- Offset Income (most preferred, best bang for your buck): the mortgage balance is removed from the application and a positive or negative offset figure is added to the overall application depending on the lenders offset calculation
- There are (3) types of rental property classifications and their income qualifying parameters are unique and independent of each other:
- Basement Suite rental: when the mortgage holder resides in the property and rents out the basement suite
- Subject Rental Property: the rental property mortgage that the mortgage holder is currently applying for (purchase or refinance), and
- Existing (or Stand Alone) Rental Property: rental properties that the mortgage holder currently owns
- All three of the property classifications can have unique eligibility criteria for qualifying income allowances. For example, a monthly rental income of $2,000 can either boost or weaken an overall application depending on their respective property and rental income eligibility classifications.
- All lenders have limitations when it comes to the amount of properties they deem acceptable for a single applicant. For example, one lender may allow for a limit of 3 properties per applicant (the one they currently reside in plus 2 additional rental properties) whereas another lender may allow for up to 14 accumulated properties under ownership.
Mortgage Brokers are a key resource for individuals who purchase rental properties as they have access to multiple lenders with varying qualification guidelines.
604-800-9593 direct Vancouver
403-606-3751 direct Calgary
@markogelo (Twitter)
MarkoMusic (SoundCloud Account)...all podcast music tracks are performed and produced by Marko
More episodes
View all episodes
151. Mortgage Qualification for Pre-Sale Condos - be careful.
14:19Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caCLICK HERE to download Marko's award-winning Mobile Mortgage App!150. Rate forecast pointing to variable rate mortgages and weaker Canadian dollar
11:49Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caCLICK HERE to download Marko's award-winning Mobile Mortgage App!149. Deep diving into Vancouver & Calgary from a real estate and mortgagenomic perspective
16:59Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caCLICK HERE to download Marko's award-winning Mobile Mortgage App!Episode Reference Link: Foreign Buyer Tax, Prohibition BanEpisode Reference Link: the ChinookEpisode Reference Link: the Ring Road148. Survival Guide for First-Time Home Buyers in Canada
26:22Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caCLICK HERE to download Marko's award-winning Mobile Mortgage App!Outro Song: “FindTheTime” by SleepingLorry147. The key to qualifying for a single-family dwelling in Vancouver - the basement suite
09:39Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caOutro Song: “Go” by SleepingLorry146. I bet you didn't know this about the RRSP First Time Home Buyer Program
11:01Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caOutro Song: “FightTheDay” by SleepingLorry145. BC and Alberta are ramping up in more ways than one
15:36Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caOutro Song: “TheFallSong” by SleepingLorry144. Overlooked Mortgage Qualification Criteria
18:03Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caOutro Song: “23DaysInBerlin” by Marko Gelo143. Maternity Leave, Child Support, and Canada Child Benefits - can you use them to qualify for a mortgage?
11:37Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caOutro Song: “insanity” by Marko Gelo