Vancouver Real Estate became attractive investment opportunity itself in the last decades. Nevertheless, lenders classify property purchase deals for the purpose of financing and “investment property” is only one of them, not all. If property purchase if not for a primary residence, than it may be nominated as:
Second home, including summer houses, ski resort cottages. This category also covers property for other family members including housing for children-students and secondary residence for spouses working shifts.
Investment property meaning all rental units.
Investment Property Mortgage can provide financing for up to 80% of the appraised value of your rental property. The rest 20% should be secured by down payment.
To qualify for an Investment Property Mortgage, you need to
Have a good credit history,
Demonstrate sufficient rental income (either through existing tenancy documentation or an opinion of market rent).
Purchase of the Second Home is financed with 5% down payment. In order to qualify for a loan, a borrower should
Have a good credit history,
Demonstrate sufficient income to maintain financial obligations for existing primary residence and being able to afford a mortgage for the Second Home.
Not sure where to start? Talk to us, we can help you decide whether an investment property is right for you.
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