Investment Property Mortgage Financing

Whether you’re purchasing your first rental property or adding to an existing portfolio, we understand investor financing. Andy was ranked #12 of 180 agents for volume and performance — we know how to structure investment deals that work.

– WHAT INVESTORS NEED TO KNOW

Investment Property Financing Rules

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20% Minimum Down Payment

Unlike your primary home, investment properties require at least 20% down. This means no CMHC insurance, but also no default insurance premiums to pay.

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Rental Income Offsets

Lenders typically use 50% of the rental income to help you qualify (or 100% if you have landlord experience and signed leases). This can significantly increase your borrowing power.

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Property Type Matters

Single-family homes, duplexes, and small multi-unit properties (up to 4 units) qualify for residential mortgages. Larger buildings require commercial financing.

💡 Mortgage Tip

Consider longer amortizations for rentals. While paying down your mortgage faster is generally good advice, investment properties are different. A 30-year amortization means lower monthly payments and better cash flow — the difference between a property that cash flows positive and one that requires you to subsidize it monthly.

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GOOGLE REVIEW

I have used Elevation Mortgage for both of my purchases. Both times they were thorough, explained all the little details, and I received the best rate for my needs. They are very responsive and you cannot go wrong with this company.

Siobhan E.

Repeat Client • Investor

– HOW QUALIFICATION WORKS

Rental Income & Portfolio Financing

Understanding how lenders count rental income is essential for portfolio growth. Here’s how it actually works:

Rental Income Offset Calculation

Most lenders use a 50% rental offset. This means they add 50% of the gross rental income to your qualifying income. The other 50% is assumed to cover vacancy, maintenance, and taxes.

Example:

Monthly Rent: $2,200

Annual Gross: $26,400

50% Offset: $13,200 added to income

Some lenders use up to 80% offset — significantly improving your qualification. We know which lenders offer this and when it makes sense to use them.

Portfolio Financing Limits

Properties 1-4

Standard residential financing available. Most lenders participate. Traditional stress test applies.

Properties 5-10

Conventional financing only. Fewer lenders but still achievable. We have specific lender relationships for this range.

Properties 10+

Commercial or portfolio lenders required. Different qualification criteria — asset-based lending becomes an option. Let’s discuss your strategy.

– KNOW THE RULES

Down Payment Requirements by Property Type

Property Type	Minimum Down	Notes
Single-unit rental	20%	Standard requirement for non-owner-occupied
Duplex (owner-occupied one unit)	5-10%	CMHC insurable — great entry strategy
Duplex (non-owner-occupied)	20%	Conventional financing required
Triplex/Fourplex (owner-occupied)	10%	CMHC insurable up to 4 units if you live in one
5+ units	25-35%	Commercial financing territory

💡 INVESTOR STRATEGY TIP

The house-hack approach: Buy a duplex, triplex, or fourplex and live in one unit. You get a 5-10% down payment (vs. 20%), lower rates through CMHC insurance, and rental income to offset your mortgage. Many investors use this as their first property before scaling.

– COMMON QUESTIONS

Investment Property Mortgage FAQ

Answers for savvy Alberta and BC investors building their real estate portfolios.

How much down payment do I need for an investment property?

For a single-unit rental property, you need a minimum 20% down payment. For multi-unit properties (2-4 units) where you won’t live in any unit, you’ll also need 20% down. If you plan to live in one unit of a multi-family property, you may qualify for as little as 5-10% down with CMHC insurance.

How is rental income calculated for qualification?

Most lenders use a rental offset calculation. Typically, 50% of the gross rental income (based on an appraisal or lease) is added to your income for qualification purposes. The other 50% is assumed to cover vacancy, maintenance, and property taxes. Some lenders use up to 80% offset — we’ll match you with the best option.

Can I finance multiple investment properties?

Yes, but conventional financing typically becomes harder after 4-5 properties. Each property adds to your debt load and stress test calculations. We work with portfolio lenders and commercial financing options that specialize in investors with larger portfolios. Let’s discuss your growth strategy.

What's the BRRRR strategy and can you help with it?

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is an investment strategy where you buy undervalued properties, renovate them, rent them out, then refinance to pull out your capital for the next purchase. We help investors structure the financing for each phase, including renovation financing and cash-out refinances.

Are investment property mortgage rates higher?

Yes, rental property rates are typically 0.10% to 0.25% higher than owner-occupied rates. This reflects the slightly higher risk lenders associate with non-owner-occupied properties. However, with access to 30+ lenders, we can often find rates that are very competitive.

Can I use equity from my home to buy an investment property?

Absolutely — this is one of the most common strategies. You can refinance your primary residence or open a HELOC to access equity for your down payment. The interest on funds borrowed for investment purposes may be tax-deductible. We’ll help you structure this properly and recommend consulting your accountant on tax implications.

Do I need to live in Alberta or BC to buy investment property there?

No, you can invest in Alberta or BC properties from anywhere in Canada. Some lenders have restrictions on out-of-province investors, but many don’t. We work with clients across Canada who are investing in Alberta’s strong rental market. We handle the financing; you handle the property management.

What about short-term rental properties like Airbnb?

Short-term rental financing is available, though lenders assess these properties differently than traditional rentals. You’ll typically need to show a track record of rental income (or conservative projected income), and some lenders have specific STR programs. We’ll help you find the right lender for your situation.

Investment Properties Blogs

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