Buying your first investment property in the GTA comes with a different set of financing rules than buying a primary residence, understanding them upfront saves you from surprises at the lender's desk.
Down Payment Requirements Differ
Investment properties generally require a larger minimum down payment than owner-occupied homes, and mortgage default insurance rules differ as well, confirm current requirements with a mortgage professional before you shop.
Using Rental Income to Qualify
Lenders will typically allow a portion of a property's expected rental income to offset your debt service ratios, though the exact percentage used varies by lender and property type.
- Shop multiple lenders, investment property policies vary more than primary residence policies
- Get a realistic rental income estimate from a local property manager or agent before you finalize your offer
- Factor vacancy, maintenance, and property management costs into your cash flow projections, not just the mortgage payment
Next step
Numbers can be intimidating, you don't have to run them alone. Contact Hamodi Realty for a personalized affordability breakdown and a referral to trusted local mortgage professionals who know the GTA market inside and out.