In the last while, investors who own many small rental properties/single family homes, have noticed that the banks have started becoming very tight when it comes to lending.
While mortgage brokers do have access to a whole other category of lenders who charge slightly higher rates than the banks but are more flexible when it comes to determining your maximum loan amount on rental properties, the best way to take your real estate investment portfolio to the next level, is to jump right into commercial real estate/multi family (6 units and above). You’ll need at least 25% down, but with multifamily, the lender’s primary concern will be the income and expenses of the subject property (in addition to your experience buying, managing and selling properties) and less so the nitty gritty performance details of every single property in your portfolio.
For your next mortgage, call me today! I look forward to hearing from you.
David Grossman MBA
Loan Central Canada/Real Mortgage Associates Lic # 10464