Creative Solutions For Investors

This will depend on the lender. Most lenders will not allow gifted down payments for rental properties but our mortgage brokers will always explore all the options available to you.

Properties comprising 1 to 4 units will be zoned as residential. Any properties comprising 5 units or more will be zoned as commercial.

The difference between commercial and residential is the down payment and qualification requirements. For instance, commercial mortgages have higher down payment requirements, higher interest rates and more stringent qualification requirements.

If you are planning to purchase or refinance a commercial property, we can put you in touch with our commercial side of Pineapple to help you!

In most cases yes, rental properties have higher interest rates because of the risk that is involved.

However, it's our role as mortgage professionals to find you the best rate and terms for your investment needs. Because we work with all the leading lenders and those who specialize in investment property financing, we can find you the most favourable programs for what you are trying to achieve.

This will depend on the lender. Some lenders will allow you to own 5 rental properties in total, others will allow 5 plus your owner-occupied property, and some lenders have a total door policy.

If you own an owner-occupied property and 1 rental already, it’s important to speak with a Pineapple mortgage professional so that we can place you with a lender who is properly aligned with your future investment needs.

Yes, in most cases the lender will factor the rental income you are making from your other properties into the debt servicing ratios to qualify you for a new mortgage. But It’s important to know that each lender uses slightly different formulas to calculate the rental income into your debt servicing ratios.

Certain lenders will add a certain percentage of the rental income to your household income, others will deduct a percentage of the rental income from the borrower’s debts to determine their debt servicing ratios. Some lenders will calculate your debt coverage ratio by looking at the operating income and expenses.

It can be a complex and confusing process, which is why it’s best to leave it to a mortgage professional to do all the calculations necessary and recommend suitable options.

Absolutely. We work with many self-employed individuals who buy and own rental property. One of the key elements to know when purchasing a property as a self-employed individual is that the qualification requirements are often different than salaried individuals. As a business owner, you may be required to provide your T1 Generals, Proof of HST or GST, Copy of your Business Licence or Articles of Incorporation,  bank statements and even your contracts.

It’s also important to know that there are numerous ways to qualify your income as a self-employed investor and there are different programs for those who collect traditional income that is supported by tax documentation versus those who collect income that is more difficult to prove such as cash.

Yes, there are many lenders out there who will finance rental properties. So even if you don’t qualify with a prime lender such as your bank, there are other banks and mortgage financing companies that we can submit your application to.

In the event that your debt servicing ratios fall outside of the prime lender limits or your credit score does not allow you to qualify with certain lenders, we can look at alternative lenders who have less stringent qualification rules.

If you don’t qualify with the alternative lenders, Private lenders are a great short-term solution to help you purchase the property initially, so that you can build equity and improve your credit rating to be refinanced back into a prime or alternative lender option.

There are always solutions, and it’s a Pineapple mortgage broker's job to help you find one that will get you making rental income and growing your cash flow as fast as possible.

There are a number of different mortgage options and programs available for investors.

• Purchase plus improvement option, if you plan to purchase a rental property of 2 to 4 units and roll the renovation costs into the mortgage.
• Net worth program If all your income is tied up in rental income you make from your properties, but you have strong credit and high liquid worth.
• Construction and land financing if you plan to buy land and construct an investment property.
• Holdco programs if you plan to hold your investment properties in the holding company.
• FLIPP programs to help you buy, improve and then immediately sell the property.
• 2nd mortgage and HELOC options geared toward investors if you need equity.

These are just some of the options available to you when working out how to buy an investment property and build up a portfolio - options I’m always happy to discuss with you at any time.