Investment Property Mortgages

A non-owner-occupied rental property in Canada requires a minimum 20% down payment, and rates are typically slightly higher than for a primary residence because lenders view rentals as higher risk. The upside is that lenders will often count a portion of the property’s rental income toward your qualifying income, which can significantly boost how much you can borrow.

For owner-occupied properties with a rental unit — like a duplex or a home with a basement apartment — you may qualify with as little as 5% to 10% down, making “house hacking” a popular entry point for new investors in Toronto and surrounding cities.

Different lenders use different formulas to factor rental income into your application. Some add a percentage of the rent to your income; others subtract expenses and use the net. These rules make a real difference to how many properties you can finance. As a broker, I match your goals to the lenders whose rental-income policies let you qualify for more and keep your portfolio growing.

Serious investors quickly run into qualification ceilings at the big banks. Working with a mortgage broker gives you access to monoline and alternative lenders who specialize in investors with multiple properties, refinances to pull out equity for the next purchase, and strategies like the BRRRR approach. Structuring each mortgage with the next purchase in mind is the key to scaling without hitting a wall.

Cash flow is everything in real estate investing, and your mortgage rate, amortization, and structure directly affect it. I help Ontario investors compare more than thirty lenders to find financing that protects monthly cash flow while keeping future flexibility open. From your first rental to your tenth, having a financing partner who understands investment strategy — at no cost to you — is a genuine competitive edge.

Before you buy, it pays to model the full picture: mortgage payment, property taxes, insurance, condo or maintenance fees, vacancy allowance, and a reserve for repairs, all measured against realistic market rent. A property that looks profitable on the listing can turn cash-flow negative once every cost is counted, especially in higher-priced GTA markets. I help investors stress-test deals against rising rates so a purchase that works today still works if the market shifts.

Structure matters just as much as the property itself. A longer amortization lowers your monthly payment and improves cash flow, while a shorter one builds equity faster. Choosing the right lender also affects how easily you can refinance later to pull equity out for your next purchase. Whether you are buying a condo in Toronto, a duplex in Hamilton, or a single-family rental in Durham Region, I align the mortgage structure with your investment goals so each property strengthens the position of your overall portfolio.

The property type shapes both the financing and the returns. Condos in Toronto offer lower maintenance and strong tenant demand but carry monthly fees that eat into cash flow. Freehold houses give you full control and land value but more hands-on upkeep. Multi-unit properties such as duplexes, triplexes, and small apartment buildings can deliver the strongest cash flow per dollar invested, though financing rules differ once you pass four units. I help Ontario investors weigh these trade-offs against their budget, time, and goals, then secure financing matched to the exact property type so the numbers work from day one.