Before you make any decisions related to the purchase of property, it is important to know what offers are available to you. There are various financial institutions across Canada that have offers for property investors, and conducting research on the different options available is a step in the right direction.
What does the RBC offer?
According to the official RBC website, there exists the RBC Investment Property Mortgage, which can provide you with financing. For your rental property, this can be up to 80% of the appraised value.
The financial institution also notes that it has competitive rates and a variety of terms. It can be a solution for you if you are, for example, considering the acquisition of a rental portfolio of either one or more properties for the sake of building income. Another reason the offer may appeal to you is that it can help convert your current home into a rental property. Moreover, the RBC Investment Property Mortgage can be of benefit to you if you wish to buy a property for your child to live in.
In order to qualify for this particular offer, ensure that your credit history is in good standing. Additionally, make sure that you are able to demonstrate that you have sufficient funds when it comes to rental income. This can be either via an opinion of market rent or existing documentation on tenancy. Make sure that you are able to meet the obligations that come with a mortgage through non-rental income as well.
The RBC website also notes that the required documents you should have at ready when completing your mortgage application include your recent notice of assessment, T776, and any current lease agreements alongside any opinion of market rent. It is also important to note that other documentation requirements may be needed based on the application’s structure.
What can the CIBC offer?
The CIBC also has online pages dedicated to help you purchase your next investment property. One of the first steps pertains to submitting an online form for pre-approval purposes. The online mortgage application and mortgage pre-approval form, for example, requires you to fill out blank spaces in terms of the type of request, your personal information, as well as some additional information.
Firstly, you should select either the mortgage pre-approval certificate option or the mortgage application one. The first option can help you shop for a property with confidence, while the latter option applies to you if you have either already bought a home or you’re looking to borrow additional funds. Then, enter the amount of down payment involved in the property before proceeding with the next section.
The personal information section requires items such as your first name, last name, as well as the address of your home. This is in addition to your city, province, and postal code. Don’t forget to insert the correct phone number you wish to use as well. There is also an optional blank where you can input an alternate telephone number. Indicating the best time to call you is another step in the right direction.
Moreover, provide the information pertaining to your Gross annual household income, whether or not you have declared bankruptcy in the last seven years, and whether or not you are making the application with a joint applicant.
What about the HSBC?
The HSBC also has options for individuals who wish to finance an investment property. The financial institution has mortgage specialists available to aid you in terms of establishing the best approach. Approaches are dependent on the length of your property ownership, your cash flow needs, as well as how much capital you wish to invest in the first place. There are both short-term and long-term strategies available depending on your needs, too.
The bank brings attention to a conventional mortgage and a home equity line of credit. The first type of mortgage is common in terms of investment properties, according to the website. Based on your downment, the funds from the property should also cover the interest and principal payments alongside being able to provide a contingency fund.
As for a home equity line of credit, if you have sufficient equity when it comes to your primary residence, then it can be an effective and flexible option that combines your debt into a single package. If you think that it is in your ability to make lump-sum payments, then this approach can be a step in the right direction.
Similar to the other banks, knowing the amount of down payment you can pay is important in terms of property investment. Having this type of knowledge can help establish a reliable and long-term return on the investment. Be sure to have an in-depth conversation with both your realtor and trusted advisor on this front in order to figure out the option that works best for you and your goals.