📞 (416) 666-8456  |  ✉️ info@mortgagewave.caLicensed Mortgage Agent (Level 1) | FSRA #M24000660

Financing Your Investment Property

Real estate investing is one of the most reliable wealth-building strategies in Canada — and the GTA market continues to offer strong rental demand and long-term appreciation. Whether you're buying your first rental property or adding to a growing portfolio, securing the right mortgage is critical to your investment's success.

Investment property mortgages have different requirements than owner-occupied purchases. At Mortgage Wave, we specialize in navigating these nuances and finding the best financing solutions from lenders who actively support real estate investors.

Investment Property Requirements

RequirementDetails
Minimum Down Payment20% (no CMHC insurance available for rental properties)
Interest RatesTypically 0.10%-0.25% higher than owner-occupied rates
Rental IncomeMost lenders use 50%-80% of rental income to help you qualify
Credit ScoreMinimum 680 recommended (higher is better for best rates)
Debt Service RatiosGDS ≤ 39%, TDS ≤ 44% (including rental income offset)

Types of Investment Properties We Finance

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Single-Family Rentals

Detached homes, semi-detached, and townhouses used as rental properties. Popular with first-time investors.

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Multi-Unit Properties

Duplexes, triplexes, and fourplexes. Owner-occupied multi-units can qualify with as little as 5% down.

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Condos

Investment condos in Toronto, Mississauga, and the GTA. We know which lenders approve condo investments.

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Portfolio Financing

Multiple properties? We work with lenders experienced in portfolio lending to help you scale efficiently.

Smart Investment Strategies

  • Owner-occupied multi-unit — Live in one unit, rent the others. Qualify with 5% down on properties up to 4 units
  • HELOC strategy — Use a Home Equity Line of Credit on your primary residence for the down payment on your investment property
  • Refinance and reinvest — Refinance an appreciated property to pull out equity for your next purchase
  • Smith Manoeuvre — Make your mortgage interest tax-deductible by converting your home equity into investment loans

Tax Considerations for Investors

Investment property ownership comes with important tax implications. While we're mortgage experts (not accountants), here are key points to discuss with your tax advisor:

  • Mortgage interest on investment properties is tax-deductible
  • Rental income must be reported on your tax return
  • Capital gains tax applies when you sell (50% inclusion rate)
  • Operating expenses (maintenance, insurance, property management) are deductible
  • CCA (depreciation) claims can reduce taxable income but affect capital gains at sale

Frequently Asked Questions

Yes! Most lenders will use 50% to 80% of the expected or actual rental income to offset the property's carrying costs when calculating your debt service ratios. Some lenders are more generous than others — we know which ones give you the best treatment.

Most A-lenders will finance up to 4-5 properties total. Beyond that, we work with alternative lenders and portfolio lenders who specialize in investors with multiple properties. There's no hard limit — it depends on your overall financial strength and equity position.

Typically yes, by about 0.10% to 0.25% compared to owner-occupied rates. However, through our network of 50+ lenders, we often find competitive rates that minimize this premium. The right lender can make a significant difference.

Ready to Grow Your Real Estate Portfolio?

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