I work with many real estate investors in London Ontario who still think they have to have a minimum  20-25% down payment when buying income residential properties such as duplexes tri-plexs or 4 or more units. Below is a CMHC features and benefits and if you go here, you can read all about it.

CMHC Mortgage Loan Insurance enables Approved Lenders to help borrowers purchase multi-unit properties with a minimum of 15% down. Borrowers can also access competitive interest rates for the life of the mortgage and enjoy reduced renewal risk.

FEATURES

 Purchase – Loan-to-Value ratios up to 85% of the “as is” or “as improved” value.

 Flexible financing terms available including extended amortization periods and fixed and floating interest rates.

 Available for first, second or pari passu mortgages.

 With substantial capital improvements, projected rents may be used in valuation of “as improved” lending value.

 The loan during renovation / improvement can be the greater of 85% of “as is” value or 75% of “as improved” value.

BENEFITS

More Flexibility – Borrowers can obtain mortgage financing up to 85% of the lending value of the property.

Lower Interest Rates – CMHC insured financing provides access to competitive interest rates for the life of the mortgage.

Reduced Renewal Risk – CMHC Mortgage Loan Insurance offers product features that meet project financing needs and

facilitate renewals.

Availability – Available for new and existing multi-unit residential properties including rental, student housing, retirement and longterm care facilities located from coast-to-coast-to-coast. 

Ty Lacroix Broker of Record & Owner

          

'NOT ALL REALTORS* ARE THE SAME', One call or email to me and you will know why!

Your London and S/W Ontario source for results!

519-435-1600   www.enveloperealestate.com

 
This post has been included in Ontario Real Estate News Middlesex County, ON Real Estate News London, ON Real Estate News
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Post is included in group: Ontario Real Estate and Information

2 Comments on How Much of a Downpayment Do You Really Need to Buy Investment Properties in Canada?

DEC
06
2011
868,446 Points 5 Featured Posts

Ty,

Excellent summary and this is very true. It used to be 75 but 85 makes quite a difference.

Brian
7:55pm • #1
DEC
07
2011
333,351 Points 4 Featured Posts

Brian, for those who understand levearge, it is huge.

Ty
11:45am • #2


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