Mortgage for Rental Properties Toronto

You can never go wrong with building rental properties in Toronto. Let our Mortgage Brokers team help you to find the right lender for you.
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Mortgages for Rental Properties Toronto


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).


Mortgage Offers
pick the one thats right for you.
  • get
    $ 2,000
    on purchase over
    $500, 000
  • Receive
    $ 1,400
    when you transfer
    your mortgage of over $500,000
  • complimentary
    12 months
    Home service plan
    fint out more

Rental Property Mortgage Qualification Criteria

The benefits of investing in Toronto rental properties are clear, but building or buying rental properties is an expensive undertaking. You will need a mortgage to finance the investment. Some of the requirements to qualify for a rental property mortgage include:
  • The most recent T776 and the most recent NOA (Notice of Assessment)
  • Opinion of market rent and/or current lease agreements
  • A good credit history
  • Non-rental income to prove you can meet the mortgage obligations
  • 20% down payment for an investment property with 1 to 4 units (these are not eligible for high ratio default insurance)
  • If you are an owner-occupier (you live in one of the units), the down payment is 5% for 1 to 2 units and 10% for 2 to 4 units.
  • If the purchase price is over $500,000, an owner-occupier pays a down payment of 5% of the first $500,000 and10% of amounts over $500,000.
Featured Rates
Fixed
  • Lender
  • Rate
  • Term
  • Toronto-Dominion
    2.34%
    5 years
  • Scotiabank
    2.39%
    2 years
  • CMLS
    2.29%
    3 years
  • RFA
    2.44%
    5 years
  • First National Bank
    1.99%
    4 years
  • DUCA
    1.98%
    2 year
  • B2B
    2.84%
    2 years
  • Meridian
    2.19%
    5 years
  • RMG Mortgage
    2.29%
    5 years
  • Manulife Bank
    2.14%
    5 years
Variable
  • Lender
  • Rate
  • Home Trust
    4.49%
    5 years
  • Mcap
    2.15%
    5 years
Other
  • Type
  • Rate
  • Secured line of credit
    2.95%
  • Private mortgages
    5.99%
Questions?
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Why Hire a Mortgage Broker?


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. 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 RMA Mortgage Broker because these lenders have higher interest rates (to compensate for the “riskier” people they are lending to). 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 our 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.


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What our CLients Say
Customer Testimonials
  • Avatar Boyd Wehner ★★★★★
    I used Nick to renew my mortgage. He found me a better deal than my bank could offer and I intend to use him again the next time I need to renew. Nick did all the work, he made it easy and simple for me. He really knows his stuff!
  • Avatar Nicole B. ★★★★★
    I have been dealing with Masoud for my first mortgage back in 2016 and my second mortgage in 2019. He has always been of great help and easy access. He is the first person I go to with regards to mortgage questions. Keep up the good work guys!!
  • Avatar kit cathe ★★★★★
    Working with Masoud was a great experience. We learned about mortgage options that were new to us as we were first-time buyers. Knowledgeable and helpful with no pressure, we were able to make an informed decision that worked out very well for our needs.
  • Avatar David Smith ★★★★★
    I can't recommend Masoud enough if you need a mortgage, a renewal, or even help getting to that point. He is extremely knowledgeable and resourceful and works incredibly hard for his clients! He’s done our first mortgage in 2014, refinance in 2028 and now our second mortgage this winter.
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