Investment Properties
What is considered an investment property in Ontario?
In order for a property to be considered an investment property it must be purchased with the intention of getting a return on the investment either through rental income, the future resale of the property, or both.
The property can be owned by an individual investor, a group of investors, or a corporation and held for long term or short-term investment. There are three types of investment properties. Namely, they are residential, commercial and mix-use such as units that are for commercial purposes on the main floor and residential on the top floor.
What You Need To Know For An Investment Property Mortgage
Most Canadian banks require a minimum down payment of 20% of the purchase value of an investment property. Certain banks may charge a higher interest rate on investment property mortgages while some Credit Unions may offer lower interest rates. It is worth mentioning that rental income from the property is considered income in the eyes of the bank.
When purchasing a property that is one factor that will be accounted for even if there may not be an immediate tenant. Your total net worth also plays a role in your investment property mortgage process.
I, Esi have extensive portfolio of clients who own investment a vacation properties. Get in touch with me today to find out what is the right opportunity for you.
Frequently asked questions
How safe is my investment?
Real estate is a particularly secure investment since it is a physical asset, so you will always have the value of the property, land, and any extra insurance on it. To protect your money, we use an extremely thorough method of due diligence. Nevertheless, every investment still entails a degree of risk.
What are the different types of investment propertie?
Investment properties are often classified as residential or commercial.
A: Residential investment properties
B: Commercial properties
C: Mixed-use properties
Should I purchase real estate as an investment?
Due to growing property values and the ability to produce consistent monthly rental income, an investment property may provide substantial profits. As long as you are confident in investing in an illiquid asset for the long term and in your ability to choose the correct property, it is a very difficult asset class to surpass.
How can I get an investment property without any savings or money?
If you lack finances, you may still acquire an investment home by tapping into the equity of your principal home.
I want to get started so what’s the following step?
Your completed application, which you can submit by clicking our apply now form, is all we need. Once we get this, we may have a quick, obligation-free phone conversation. You may also contact us directly at 416-827-1755 at any time to explore your possibilities.
