Buying a home is one of the most important and exciting steps in your life.... now that pesky financing! Deal with people who can offer you and your family the best options for you with Your Mortgage Now! Devin Cristo and Wes Will are Trusted Saskatoon Mortgage Experts and they have years of experience helping individuals and families finance their dreams by offering mortgages from a variety of lenders for people from all walks of life. In their latest mortgage tip they share some advice on Investment Property Mortgages
CONSIDERING A REVENUE PROPERTY IN SASKATOON?
When it comes to a revenue property Devin & Wes from Your Mortgage Now know having options and the best rate possible are at the top of the list. They are Saskatoon Investment Mortgage experts at making your revenue property investment a profitable one.
Buying an investment property is a popular option for Canadians looking at different ways to invest their money. However, unlike the mortgage you took out on your principal residence, financing an investment property is a little more complex.
1. How Many Revenue Properties
The number of units in the building and whether or not you'll be occupying one of the units are the two major components that control what your financing will look like. When you start shopping around for an investment property, the first thing you need to consider is the number of units your building will have. Most buildings with 1-4 units are zoned residential, so the qualification criteria and financing options from lenders are only slightly more difficult than that of a mortgage similar to what you have on your principal residence. If it's a multi-unit property, the second thing to consider is if you, the owner, will be living in one of the units or not. If you will be occupying one of the units, the property would be considered owner-occupied. If all of the units will be rented out, your property would be considered non-owner occupied.
However, buildings with 5 or more units are zoned commercial, so a lender would require that you take out a commercial mortgage on it. With a commercial mortgage, the qualification criteria is even tougher to meet and interest rates are often much higher.
An investor will have to put down at least 20 percent to buy a property from a typical bank... On top of the down payment, an investor will have to pay closing costs, which can range from two to four percent of the loan amount.
If you're ready to learn more or to discuss options for a residential investment property or two give Devin and Wes a call!