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Loans for Investment Property
Mortgage for Rental Property
Design your long-term wealth strategy with financial portfolio diversification. Create passive income with rental properties while benefiting from potential real estate appreciation. Rental properties are another way to invest your money while benefiting from tax deductions. Square Capital works both with prime (bank) lenders and private mortgage lenders to offer innovative mortgage solutions.
When banks cannot qualify you, we work with private lenders to provide borrowers with lower rate, fast 24-hour mortgage funding options (subject to terms and conditions).
Mortgage Solutions in Toronto, GTA, and across Ontario
Fast, Flexible, regardless of Credit
Rental Property
Rental property, often referred to as investment property, are a great option for Canadians to diversify their financial portfolio. Many borrowers opt for rental properties as they understand real estate and housing. As a tangible asset that may appreciate, renters help with your mortgage while you provide them with additional shelter choices. Borrowers may also want to purchase a house with the intent to renovate it and resell it at a profit or to refinance an existing rental property.
Borrowers should contact a mortgage broker about how to qualify for rental property including what type of down payment may be required. Typically, borrowers are required to have a good credit history with sufficient rental income in addition to non-rental income to be qualified with prime lenders such as banks. Our team of mortgage broker specialists have access to alternative lenders including private lenders that may qualify borrowers with less restrictive requirements.
Advantages of Rental Property
- Passive monthly income – Borrowers will receive additional monthly income to supplement their financial portfolio.
- Paying off the mortgage – The rent will contribute to paying down your mortgage.
- Tax Benefits – Rental property owners can access tax deductions and should consult an accountant to learn more about these benefits.
- Portfolio diversification – Enables borrowers to have their eggs in more than one basket.
- Resell profit – Borrowers that want to purchase an investment property to renovate and resell may realize profits.
Disadvantages of Rental Property
- Managing tenants and the investment property – Occasionally there may be issues with tenants such as paying rent on time. Also, rental properties will require on-going maintenance and repairs.
- Tax implications – Borrowers may realize gains or losses that affect their income tax requirements. Speak with an accountant to understand the risks.
Mortgage brokers and agents will work with you to decide if a mortgage for rental property is a suitable option. Our mortgage experts will also help to qualify you for an investment property mortgage in Toronto and other cities across Ontario. Contact a rental property mortgage broker specialist at Square Capital to review mortgage options. Our mortgage professionals and investment property mortgage lenders have worked with borrowers in situations with high debt levels, bad credit or are self-employed to provide alternative lending options.
Questions about Mortgages for Rental Properties
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We know it’s complicated proving income earned and work with lenders who understand this.
With access to many options, we help navigate and secure suitable mortgage possibilities.
Life doesn’t always go as planned. We help get your finances in order while boosting your credit score.
Leverage your home’s equity and have access to immediate tax-free cash flow, with no regular payments.
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We strive to get you the best mortgage loan rates with flexible 3 to 12-month terms
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Other Mortgage Options
Other mortgage options
Homeowners have choices and can consider options to leverage their home equity. Depending on the product, these options may have slightly higher interest rates.
Home Equity Line of Credit (HELOC)
There are different products that provide flexibility for the most suitable mortgage loan options such as home equity lines of credit or HELOC. A HELOC still enables access to the home’s equity, just in a different way. Instead of a single (or lump sum) payment, a HELOC provides on-going access to certain amount of money, similar to a credit card, with a lower rate. The amount of the HELOC depends on the value of the home.
The benefit of a line of credit is that payments are interest only payments and homeowners can access it when needed. Downsides include variable interest rates and access to the total amount of the HELOC, that could lead to more unwanted mortgage debt. That being said, there are opportunities to lock in rates to protect monthly mortgage payments.
Private Mortgage
When homeowners cannot qualify a mortgage refinance through a bank mortgage debt consolidation or a home equity line of credit (HELOC), private mortgages may be an alternative. Since private mortgage lenders will secure a mortgage debt consolidation against a home, the interest is usually lower than high interest debts like credit cards.
Private lenders usually charge a higher interest rate and fees than a bank, given the higher level of risk, however this option still reduces interest costs over time. This is because these lenders understand that situations exist such as quick turnaround for financing, bad credit, non-stated income and non-conventional properties.
Typically, private mortgages are shorter term products and only require the interest portion to be repaid. Private lenders evaluate risk differently than traditional lenders and will consider the borrower’s ability to repay that is beneficial to self-employed and people with bad credit. Private lenders can also provide debt consolidation options through second mortgages.
Second Mortgage
Borrowers unable to qualify for a mortgage refinance leveraging equity, could consider a second mortgage. A second mortgage will provide the option to consolidate loans with higher interest into a lower rate option. While interest rates for second mortgages tend to be higher, it will save money on interest costs over time. Speak to a mortgage broker to understand the costs associated with a second mortgage.
Reverse Mortgage
An option available to homeowners 55 and older are reverse mortgages that provide access to the home’s equity without having to sell. Reverse mortgages allow homeowners to borrow up to 55% of the value of the home. The concept of this mortgage is essentially a reverse loan that means there are no payments required. Payments will be made either in monthly payments or in a lump sum payment to homeowners. Homeowners will pay the reverse mortgage loan when they move, sell or the last borrower dies. Typically, the interest rate is higher, and there are fees additional associated with reverse mortgages.
Learn more about leveraging home equity for products such as mortgage refinance, home equity lines of credit (HELOC) and second mortgages.
Debt Consolidation Mortgage
To understand if a debt consolidation mortgage or a HELOC could be suitable options to consolidate debts, and help get your life back on track, contact Square Capital Mortgage Brokerage. We understand each case is unique and there are many factors to consider including homeowners with bad credit or low income. Unlike traditional lenders like banks and financial institutions, with very strict lending terms, Square Capital works with over 50 lenders, including private lenders, to find the right solution for our clients. Our expert mortgage brokers and agents will help to find solutions to lower your monthly payment and reduce or stop the interest on your debt. Lower monthly payments every month reduces the chances of financial default while improving your credit and managing your money wisely.
Learn more about leveraging home equity for products such as mortgage refinance, home equity lines of credit (HELOC) and second mortgages.
Budget Planning and Expense Tracking
While products like debt consolidation mortgages, HELOCs and private mortgages are tools to financial freedom, managing debt is the key to success. Practicing better money management in daily life like budgeting, monitoring spending, and saving. There are many free online apps that can support homeowners to achieve financial freedom and get better at managing money.
Questions? We’ll Put You On A Right Path!
Contact us today to get a free quote. We will help you understand the current market conditions affecting the mortgage market! Prequalify without affecting your credit!
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