Buying an investment property is a popular option for Canadians looking at different ways to invest their money. However, unlike the mortgage you took out on your principal residence, financing an investment property is a little more complex.
With a minimum 20% down payment, purchasers have many options available to them when buying investment/rental property. What is the cost for Mortgage Insurance? With 20% down, the mortgage is conventional and no mortgage insurance is required.
The requirement for debt coverage ratio varies from one lending institution to another. Some institutions will use rental off set for qualifying purposes, while other lending institutions will use 1.10% debt coverage ratio.
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