Investment Property Mortgages



Investing in real estate properties is a great way to immediately generate huge numbers of incomes especially if you really wanted to obtain profitable and marketable way of life. Financing a certain type of property however can be very stressful particularly if it’s your first investment. This is the reason why we need to spare time and effort to seek for the assistance of an experienced and professional broker who can help us in getting the right mortgage investments at its great rate.


Buying investment property is continuously becoming more popular and the most preferred method in investing our money. This is due to the fact that it usually rises as time passes. It is also one of the most commonly chosen ways of investment since it highlights safety and security of money. That is why, it is considered to be one of the most profitable investments we should get in touch with.


Knowing More about Investment Property Mortgages

Investment property mortgages are considered to be specialty financing that we may receive for the purpose of real estate investing.  It is a customized mortgage loan that is slightly different from a traditional one since we are going to create an investment strategy with specific purpose.  Investment properties are particularly smaller compared to those residential properties.


When we opt to apply for an investment property mortgage, there are several considerations we always need to consider and have in mind. This is very essential in order to assure that we are going to keep track of the legality of the process and assure that our time, money and effort will not be wasted.  Here are some of the important factors you need to consider and these are as follows:


  • Its Great Difference from Traditional Mortgage

Investment property mortgages differ from traditional mortgages since it follows an approval process at its unique set.  For instance, if we are going to live in the property, then we need to prepare 20% as our purchase price. We may have CMHC fee applied to our purchase depending on the lender we will be qualified on. If we plan to live apart from our residence with certain number of tenants, then, we might be able to get an owner occupied property which results to a smaller amount of down payment which is about 5%.


  • Number of Units of the Property

When we begin to shop around our investment properties, we need to consider the numbers of units our building will have. Most of the building in Canada have one to four units especially when these are zoned residentially hence its qualifications is a bit complex compared to our principal residence. However, if we have buildings with five or more units which are zoned commercially, a lender will require us to take out our mortgage on it making the qualification criteria tougher and obtain an increased interest rate.


  • Either to Occupy the Unit or Not

If we plan to invest in multi-unit property, we need determine if we are going to live in either one unit of the property or not. If we opt to stay in the property, this is referred to as owner occupied and if the units will be rented, this can also be referred to as non-owner occupied. One of the major differences in between the two is more on the amount of down payment we are going to have.


  • Credit History

Our credit history also serves as one of the most essential factor that both lenders and banks need to scrutinize especially during the approval process. It’s very essential to pull our updated credit score or have our mortgage broker to do this for us in order to make sure that we will not be wasting most of our time, money and effort.


These are just some of the most important considerations we need to always have in mind to make sure that investment property mortgages that we are about to plan for will give us profitable and marketable results we always aimed for.


Is Investment Property Mortgages Right For Us?

How can we determine if investment property mortgages are ideal revenue that we need to pursue? Well, the first thing we need to do is to become informed with regards to the real estate market which is the area we are considering to invest in. There are different types of resources we can access online such s local board of real estate, MLS and many others to seek for their assistance and support services. Better yet, we need to seek the advice of professional real estate brokers in order to professionally guide us all throughout the process that we are about to undergo.


If we felt that we are a little over our head financially, perhaps we can consider partnering other people who are also of the same field of interest and has more experience in real estate properties.  We can also determine if such area is suitable for us if we are obtaining huge amount of profits and doesn’t waste our time and money.


Mortgage Broker:  Our Great Help in Meeting Our Investment Property Mortgages Needs

Will this be a rental property, owner-occupied or perhaps just a vacation home that we might use anytime we wanted? Do we need to deal with improvement and construction processes for the property we have? Well, our mortgage broker can greatly help us to find the right investment mortgage property for our specific investment endeavours.


We need to choose professional and skilled brokers that are equipped with the right skills and knowledge in real estate investment. This to assure that we can have the best lenders and top banks that will be competing for our business and allows us to save huge amount of time, money and effort.


Mortgage broker will give us reliable and in detail insights more about real estate investment properties. They are going to help us in clearly understanding more about short term and long term mortgages rules and regulations that can best help us with our goal. They will also represent us as the customer and not a lender. Since they are not considered to be an employee of lending institutions, they offer limited products and services. Brokers will seek the best lender package that suits to our situation in different banks and investment property mortgages we aim to have.


There are already wide array of options and features that are available in the market for us to get in touch with. Investing property mortgages takes a lot of effort and time due to the competitive marketplace that are continuously intimidating huge numbers of homebuyers in Canada. It really pays to work with our mortgage professional that will completely represent us and assure that our mortgage will really suit to our needs. When we choose to seek for the service of the wrong mortgage broker, expect for thousands or extra dollars of expenses.  This is the reason why we need to choose the best and well trained mortgage broker who can help us to save our time and money despite of the complexities of the investment property mortgages process we are about to face. As early as now we need to exert more time and effort to assure that we can select the best mortgage broker who can guide and support us all the way through our mortgage investment process.


If you are looking for the best company who can greatly help you with your investment property endeavours, feel free to get in touch with Resourceful Capital Financial Corporation. They are going to help you out with all your concerns with regards to investing a property. You may call them at 1-888-882-0786 for more details and information.