This week’s video blog from MonsterMortgage.ca discusses a recent change to the way home-owners in Canada can qualify for mortgages on rental properties.
Up until recently, there were a small number of lenders who offered some flexibility on the way potential home-owners might qualify for a secondary or rental property. This has recently changed and at MonsterMortgage.ca, we want to let you know what that might mean to you.
As you may already know, there are calculations that take into account your various debts when determining your capacity to carry a mortgage. The change that we discuss in this particular video blog is the change in how rental income and carrying costs on a rental property are weighted in determining a potential investors capacity to carry that mortgage. Where certain lenders’ policies had been more flexible and beneficial to investors, recent changes in the mortgage market have led these policies to fall in line with a majority of the other lenders in the Canadian mortgage market.
While this change in of itself is important, it is also important to highlight the idea that prior to placing an offer or getting serious about acquiring an investment or rental property, you should be prepared with the necessary knowledge before finding yourself with an offer on a property that you may not qualify for.
As always, consult a trusted mortgage professional locally and ask them about what you need to know before making your move on an investment property. If you have any questions about an investment property you’re interested in, leave your questions here or leave a comment below.