Most of Canada has shifted to a buyers' market in real estate. In places like GTA's condo belt, "buyer's market" doesn't quite capture the downturn, it's more like a fire sale. But real estate moves in cycles, and eventually the tide will turn. Based on the new Mortgage Consumer Survey from CMHC, it may already be turning for investors in cities like Halifax and Quebec City says Robert McLister, mortgage strategist and interest rate analyst.
If you're considering purchasing a rental property, here are strategies to maximize your borrowing power:
Include rental income in your application. Most lenders will allow you to include 50-80% of the expected rental income when qualifying for a mortgage.
Consider a rental-specific mortgage product. Some lenders offer mortgages designed specifically for rental properties with different qualification criteria.
Maintain a strong credit profile. Rental property mortgages often require higher credit scores and larger down payments than primary residence purchases.
Work with a mortgage broker experienced in rental property financing. They can help you navigate the different lender requirements and find the best terms for your situation.