Mortgages by Adrian Kania
CREATIVE FINANCING SOLUTIONS FOR HOMEOWNERSHIP AND INVESTORS
mortgage solutions
Property Investing
Whether you are new to investing or a seasoned professional, the most important resource is access to capital. The amount and method of financing entirely depends on the investor profile and investment strategy. Our mortgage specialists are experienced in real estate investing and supported by a powerful network of professionals to advise on all of your options.
investor profile
Criteria for employment and creditworthiness are very similar to a standard purchase of an owner occupied residential home.
Debt Servicing:
Holding one property within the benchmarked debt servicing guidelines is difficult enough, but many alternative lenders offer mortgage products that tolerate higher debt servicing ratios. Also, while rental income can be included to reduce the debt servicing, some lenders treat the rental income more favourably within their guidelines.
Downpayment:
Buyers should expect a minimum downpayment of 25% on residential properties, unless the buyer can purchase with an “owner-occupied and rental” designation allowing for 20% or even lower. The source of downpayment is also important, such as existing equity, savings, or joint venture funds.
investment strategies
Classic Flip: Most institutional banks don’t offer mortgage products with terms less than 1 year, but there are many private lenders that offer interest-only payment options with flexible terms to support flippers using a common sense business case approach.
Cash Flowing Rental: This simple strategy is becoming much more difficult due to the housing price appreciation, but there are many affordable markets outside of the GTA with booming rental demand.
Famous BRRRR (Buy, Renovate, Rent, Refinance, Repeat): This hybrid strategy incorporates the benefits of renovations from flipping and benefits of holding cash flowing rentals. That’s because renovations such as a duplex conversion and renting to AAA tenants force appreciation on the value of the property and provide equity that can be refinanced at low interest rates to pay-off the investment into the purchase. The end result is a property at its best and highest use providing positive cash flow and a fresh line of equity to repeat the process.
professional network
See below for a list of featured mortgage products popular among property investors:
- Realtor
- Lawyer
- Insurance Broker
- Accountant
- Contractor
- Property Management
