Rental Property Financing Guide

A guide to help you secure the financing you need to grow your rental property portfolio. If you're ready for personalized advice, go ahead and click "get started" below.

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Grow your rental property portfolio and build your net worth

Real estate continues to be a popular investment vehicle in many Canadian markets. From Greater Vancouver to the Fraser Valley, real estate has experienced many years—even decades—of steady growth. And it’s no wonder: with our beautiful natural environment, safe cities, welcoming communities and mild weather, the region is a great place to live and a stable place to invest.

Investing in rental property can be a great way to increase your net worth while generating a passive income. With the growth rate of the region continuing to climb, many people are drawn to the Fraser Valley in particular, which has plenty of space for ongoing development.

Paving the way for passive real estate income

Whether you’re growing your existing portfolio of rental properties or just getting started, Robinson Mortgage can help. We’ve worked with clients in Abbotsford, Mission and many points in between, providing personalized service to help people just like you become real estate investors.

We’ll help you find financing for a rental property mortgage that uses your existing home equity to contribute to the purchase of an investment property without putting down any new cash on your down payment.

We take a careful approach to the process, ensuring your hard-earned money goes towards quality assets. Our objective is to help you create a viable and profitable long-term strategy for success, not to dip and flip for a quick buck.

Rental Property Mortgage FAQ

How does a rental property mortgage work?

For a residential rental property mortgage, you can typically leverage up to 80 percent of the appraised value of your existing home to help purchase a rental property. Depending on how many units are in the property you plan to buy, and whether you plan to occupy a unit in the property, you will need a minimum down payment of 5 to 20 percent of the purchase price to secure financing. So you might be able to make the down payment without using any of your savings.
What is the minimum down payment for a rental income property?
The minimum down payment for a rental income property depends on how many units it has, and whether you plan to live in one of the units. An example is a duplex, in which you live in one unit and rent out the other. Here are the minimum down payments for various rental property types:
- Two units, you will occupy one of the units: Down payment of 5 percent
- Two units, you will not occupy one of the units: Down payment of 20 percent
- Three or four units, you will occupy one of the units: Down payment of 10 percent
- Three or four units, you will not occupy one of the units: Down payment of 20 percent
What are the rates like on rental property mortgages?

Rates on rental property mortgages tend to be slightly higher (costing you more in interest) than typical residential mortgages. If you plan to occupy one of the units in a rental property, like a duplex, the rate may be very close to a standard mortgage. If you don’t plan to occupy the residence, the interest rate will be around 0.5 to 0.8 percent higher, as investment properties are considered by lenders to be riskier than primary residences.
Where do we start?

First, we need to know the current value of your existing home, to understand how much we can put towards the purchase of a rental property. Then we look at any existing mortgages you have outstanding, to calculate your current obligations, assets and credit standing. Once we know how much you can afford, we can consider the types of rental properties you would like to purchase.
Do I need to have a renter ready before I secure financing, or buy a property with a tenant in place?

No. We can calculate expected rental income, a portion of which is added to your other income to determine your financing options, and you can find renters after you buy the property.
What if I need to make repairs to the rental property?

It’s possible that the rental property mortgage can include sufficient funding to help you carry out repairs, but keep in mind that doing repairs may delay when you’ll start receiving rental income. We’ll need to factor that into your financial situation to make sure you have the funds to cover the mortgage before the property is rented.

Hear from a few of our happy customers

Val Meyer

Matt was wonderful when we were buying and selling our house. As soon as we had a place we were considering, he would crunch the numbers for us and see if it was doable or not. Hes very quick in response time and easy to communicate with. This is our second time using him and we will continue to use his services in the future. Thanks Matt!

Nico Abais

As a first-time home buyer, my first resolve was to search for information online and sure enough I find bits of information all over the place. Then we were introduced to Matt. He will answer all your questions in a timely manner and guide you with the whole process and expectations. Matt will work his way to get you the best rate!

Tash Stobbart

Robinson Mortgage were very helpful in obtaining our first mortgage. We had difficulties dealing with banks because my husband is a contractor and has multiple T4’s and his income tax is complicated but Matt and his team made it easy. I would highly recommend to anyone looking for a mortgage and in fact I have sent friends his way.

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Expert mortgage advice is just a phone call away

Got questions? We’re happy to help. Reach out anytime or schedule a time that works for you. And we’ll help you get closer to your dream home.

Meet Matt

Robinson Mortgage is owned and operated by Matt Robinson, a professional mortgage broker based in British Columbia’s beautiful Fraser Valley. Matt has helped countless people in Abbotsford, Chilliwack, Mission and beyond navigate the process of finding financing for their home. Whether you’re buying your first place, consolidating your mortgage, or getting ready for a future purchase, Matt is your man with a mortgage plan.
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