Rental Property Mortgage in Toronto, ON
We can arrange mortgages up to 80% loan to value for rental properties. The property can be owned both in a personal name or company name, however there are more mortgage options available when owing it in a personal name. However If there are 5+ units then you have the same amount of options if not more by owning it in a company name.
5+ units. Once the property has more then 5 units, its considered a commercial property by the banks, and a different underwriting criteria is required. Unlike 1-4 units where the bank underwrites the loan like a residential mortgage, 5 + units is underwritten like a commercial mortgage. The focus is on the cashflow of the rental property, net worth and credit of borrower, and property management experience. With residential mortgages the main focus is on the borrowers personal income and credit. With commercial mortgages personal income that is not derived from the rental property is not a factor.