Has the idea of buying an investment property ever crossed your mind?
Maybe you’d like a place to rent out and have someone else pay some or all of your mortgage while you build equity in a tangible real estate asset, or perhaps as a home for your child to live in.
Whatever your reason, investing in an additional property (or multiple properties) can be a good way to accomplish those goals, but there are also some key considerations before you dive in.
Aside from the potential challenge of finding a good tenant, there are some financing hurdles that you should be aware of.
Mortgage Rules for Investment Properties
While there are many Canadian lenders that will finance rental properties, the Department of Finance tightened mortgage lending criteria as part of its rule changes introduced in 2016.
That included eliminating mortgage default insurance, for certain mortgage types, including those for investment properties with less than 5 units.
As a result, you need at least 20% down to...