What could be better than having a constant source of income through a rental property / an investment option? Investing in a rental property could be the next best thing you can do for your future investment plan. Rental properties are safe, smart investment options. And the first step is buying a property to rent out. You can easily use a rental property mortgage and finance your rental property. Pay off the mortgage with the rental income you will earn. You can get a rental property mortgage through a mortgage broker at Ratedeals.ca. Ratedeals.ca is one of the best networks of mortgage lenders in Canada. They offer the best mortgage rates in the market.
Why do People Buy Rental Property?
People buy rental property for three main reasons.
1) When people retire they use the income from rental properties for their expenses. They choose to pay off the mortgage in advance and then enjoy the steady stream of income through their rental property. Some people invest in more than one rental property.
2) Another reason why people purchase rental property is to create a capital gain by selling the rental property for more than what they paid.
3) People also buy rental properties to diversify their financial investments. A rental property gives people the opportunity to have an investment option outside the financial markets.
Are You Applying for a Rental Property Mortgage for the First Time?
If you are a first time rental property investor, then you would have a series of questions such as – ‘How does this work?’, ‘What are the qualification requirements?’, ‘How to apply?’, etc. Ratedeals.ca has the best mortgage professionals working for them. They will be happy to help you with the application and pre-approval process and answer all your questions.
Through Ratedeals, you can apply for any mortgage quickly and easily. The preapproval process only takes a few minutes and once a mortgage lender receive your application they will get it approved within a few hours. You can also choose to visit Ratedeals.ca for a second opinion on your bank’s offer.
What are the Criteria for Qualifying?
Though the idea of having a rental property investment is promising, it’s not easy to qualify for a rental property mortgage. In the past couple of years, most lenders have made the qualification parameters difficult. Most lenders ask for a down payment of 20% on the property value. Apart from that you also need to have a strong income to support your mortgage payments. Lenders usually allow only 50% of the rents added to your income but all the costs related to the property are added.
With Ratedeals.ca, you are dealing with a trustworthy mortgage lender. Finding a good mortgage broker is not necessarily easy. A lot of research goes into finding and choosing a mortgage lender. Every lender has a different limit for debt ratios. A basic way of finding your total debt ratio is by dividing your total monthly expenses by your total monthly income from all sources, including your rentals. For your application to get approved, you have to fall within the set limits of debt ratio decided by your lender. At Ratedeals.ca, we help you find the lender that will work with your situation. They have many lenders who offer multiple mortgage options. This increases the likelihood of you qualifying for a rental mortgage with them. In fact, having multiple mortgage options is one of the key strengths of ratedeals.ca.