This article was written by Warren Pickering, one of the mortgage brokers we work with when helping you find your perfect investment property. If you would like to learn more about vacation rentals in beautiful Victoria, British Columbia - give us a shout!

Purchasing a rental property can be a great way to build equity and use rental income to help service your mortgage debt. If you are considering purchasing a rental property there a number of things to consider when it comes to financing.

Financing Options

  • Owner-Occupied

    If you are looking to purchase a property with multiple units and occupy one of the units, financing may be available up to 95% as this would be considered owner occupied. This 95% option is available for 1-2 unit properties. For 2-4 unit properties the maximum financing is 90%.

  • Rental Property Only

    If the property is not for personal use and is going to be used solely as a rental/investment, the downpayment requirement is 20%. This change to a minimum downpayment of 20% on rental only units was made back in 2010. Prior to that you could purchase rental units with less than 20% down.

    Most of the major bank and credit union lenders offer rental mortgage options with 20% down or more. There are varying criteria depending on which institution you are dealing with, that is why it is important to deal with a mortgage professional who knows what each lender has to offer.

    “Purchasing a rental property can be a great way to build equity and use rental income to help service your mortgage debt.” – Warren Pickering

Current rates for rental properties


Lately, rental property mortgages generally come with a slight premium on rate. TD for example adds 5 basis points to their 5 year fixed mortgage rate on rental units. Again, this can vary from bank to bank so it is important to check out all of your options.

A mortgage broker can provide a detailed breakdown of what you can afford based on the lending guidelines of multiple institutions so it is best to talk to a professional before starting your search.

         Warren Pickering - Mortgage Professional

Warren was born and raised in West Vancouver. He is passionate about real estate and providing the best possible service and products to help his clients achieve their housing goals. He started in financial services in 2001 and become a dedicated broker in 2007.