Investment Properties

Investment properties are considered to be strictly rental properties. They can be anything from a condo right up to a fourplex.

Most lenders will go to a maximum four units under a residential program. We have access to a couple banks that will treat a 6 unit building as a residential mortgage, and, given the right scenario, up to 8 units can still be considered residential. Beyond this, we’re talking about a multi-unit or commercial file, in which rates are different and the processing of the file takes much longer.

When seeking a residential mortgage for an investment property, the rules and guidelines vary from bank to bank. Some may only use 50% of your rental income to help you qualify, while other banks will go up to 80% or more.

In all cases, however you will need to make a minimum down-payment of 20%. The only thing that is stable throughout, is the need to put down a minimum of 20% if the property is strictly a rental. Sometimes, in order to obtain the best rate from a particular bank, you will need to put down more than 20% of your purchase price.

With so much to know, and every bank having different guidelines, it’s hard to keep up! That’s where Team Levine comes in, we navigate you through the different options and provide you with the best solutions!