One reason to invest in rental properties is that according to the Canada Mortgage and Housing Corporation (CMHC) Rental Market Reports on the average rent prices in major centres in Canada, it costs an average of $1,359 to rent a house in the Greater Toronto Area in 2018. Ontario’s population is on the rise. According to Ontario Population Projections, 2018–2046 by the Ontario Ministry of Finance, the province’s population is projected to increase by 38.0% (over 5.4 million) between 2018 and 2046. Being the capital of Ontario, most of this population will be in Toronto.
Other than the high ROI, other reasons to invest in rental properties in Toronto are that you will use proceeds from the rental property to make repayments and even leave some money for your own use, get high leverage compared to other investment vehicles (you are more bankable), and you will be investing in a tangible asset (not shares in a company that may nose dive for a variety of reasons).
You could go direct to a lender for your rental property mortgage, but a lender’s broker will try to push the product they have on offer because they are on a commission and/or salary, even if the product is not suited for you. At Approved Mortgage Broker, we are not tied to a single lender, but rather all lenders. If you do not qualify under the stringent conditions set out by mainstream lenders and the strict CMHC Income Property Guidelines, you need not worry because there are several private lenders in Toronto. You need an experienced broker like Approved Mortgage Broker because these lenders have higher interest rates (to compensate for the “riskier” people they are lending to). At Approved Mortgage Broker, we have a good relationship with private lenders, which allows us to get the best possible interest rates. Hunting for a mortgage is time and energy consuming - hiring the Approved Mortgage Broker team gives you unparalleled convenience. We will give you a dedicated broker to assess your specific needs, including repayment capabilities, so we can get the best fit for you.