Rental Mortgage Tips

The most common problem I help my clients with during a rental mortgage application is finding a lender with a competitive rental program which allows us to use the greatest amount of rental income possible.

The key features of a Rental Mortgage Product is it allows us to include the current and/or expected rental income to a mortgage application. Increasing your overall income will ultimately help you qualify for a larger mortgage.

However, some things to keep in mind when applying for a rental mortgage are:

1. The type of property, and

2. The number of properties owned

will play a key role in determining which lender is best suited for your purchasing, or refinancing scenario.

Every lender has their own policy on how much rental income they will include on a mortgage application.

Many lenders discount the rental income by 50%, as a buffer in case the property is unoccupied for a few months of the year, while other lenders will discount the income by only 20%.

This small distinction in policy can often make the difference between you qualifying for the property, or requiring you to significantly increase your down-payment.

In regards to the number of properties owned; most lenders will finance up to a maximum of 6 properties with one client. To continue increasing your housing portfolio, we will need to find other lenders with more competitive rental programs.

If you’d like to know how you can best qualify to purchase or refinance a rental property, contact me today let’s discuss your options!

☎️ Cell: 778-215-4121

📬 Email: adamsale@dominionlending.ca