Rental Property Financing... is changing
Discussions today with a preferred mortgage broker has opened my eyes to future financing for investors and their rental properties.
Rental Property Financing
- Source of down payment for the 20% minimum for rental properties must be from the customer’s own resources. Borrowed funds secured against other assets (e.g. secured line of credit on a non-subject property), unsecured credit, or gifted funds cannot make up the first 20% of the down payment. These sources can only be used towards additional down payment in excess of the 20% minimum.
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Rental income can no longer be verified using only a lease agreement. The following options are available for verifying rental income:
- Copy of lease(s) supported by 3 recent and consecutive months of bank account statements showing the rental income deposits to the customer’s account
- Appraiser’s Schedule A Market Rent Estimate / Statement of Rent in Appraisal
- Notice of Assessment / CRA My Account Assessment (Proof of Income Statement) and T1 General including Statement of Real Estate Rentals for most recent tax year.
For more information, email me direct and I can put you in contact with one or more of my preferred mortgage professionals.
Attention Investors... here is a link to the official COVID-19_Tenancy Act_Ministerial Order that amended the Residential Tenancy Act as we know it.
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