Trusted mortgage services
Mortgages for rental and investment property
Buying a rental, a home with a suite or a small multi-unit building? We find lenders that count your rental income properly.
- 5-yr fixed
- 4.89%
- 5-yr variable
- 3.70%
Updated Oct 25 · on approved credit · Compare to bank rates
Financing real estate that earns income
Investment property is financed differently from the home you live in. If you won't live in the property, you need at least 20% down; insurance with less than 20% down is only available when you live in one of the units. If you will live in one of the units, you can buy a two-unit home with as little as 5% down, or a three- or four-unit property with 10% down, with mortgage insurance.
Lenders also differ in how they count rental income. Some add part of the rent to your income, others subtract it from the property's expenses, and some look at the property's own cash flow. Choosing the right lender can be the difference between qualifying for one rental and building a portfolio.
Properties we finance
Homes with a suite
Rent from a legal suite can help you qualify for the home you live in, and some lenders count more of it than others.
Duplexes to fourplexes
Properties with up to four units are financed with residential mortgages. Five units and up need commercial financing.
Growing a portfolio
Equity from one property can help fund the next through a refinance or home equity line, and some lenders specialize in borrowers with several rentals.
How it works
How we approach investment financing
Set your strategy
A long-term rental, a home with a suite, a multiplex you live in or a property you will renovate first. Each points to different lenders.
Check the numbers
We estimate rent, expenses and how lenders will count the income, so you know what you qualify for before you make an offer.
Arrange financing
We compare banks, credit unions and specialist lenders, and match you with the one whose rental rules fit your plans.
Plan the next one
We review your mortgages at renewal and as your equity grows, so your financing keeps up with your portfolio.
Frequently asked questions
You have questions — we have answers!
Rental and Investment Property Mortgages
How much do I need down for a rental property?
At least 20% if you won't live there, because mortgage insurance with less down needs one of the units to be your home. If you will live in one of the units and the price is under $1.5 million, you can buy a two-unit home with 5% of the first $500,000 and 10% of the rest, or a three- or four-unit property with 10% down, with mortgage insurance. Budget for closing costs on top of the down payment.
Can I use short-term rental income to qualify?
It is harder than with long-term rent. Most lenders prefer a signed lease or a history of long-term rent, and many won't count nightly income at all, or count only part of it once it shows up on your tax returns. BC's principal residence requirement also limits short-term rentals in many communities to the host's own home, with local and strata rules on top. Check the rules for the address before counting on that income.
Is a fourplex a residential or commercial mortgage?
Properties with up to four units are financed with residential mortgages, so you can use regular lenders and, if you live in one of the units, an insured mortgage with as little as 10% down on a three- or four-unit property. Five units or more need commercial financing, which usually means different lenders, a larger down payment and rules based mainly on the building's own income.
How many rental properties can I finance?
There is no single limit, but each lender sets its own. Some cap the number of properties or the total amount they will lend to one borrower, and every mortgage you carry affects your debt ratios. As your portfolio grows, lenders that look at each property's own cash flow, or that work with investors who own several rentals, become more useful. We plan each purchase so the next one is still possible.
How much of my suite's rent can count if I live in the home?
Often a good part of it. For an insured mortgage on a two-unit home you live in, insurers and lenders count part or all of the suite's rent toward qualifying, either by adding it to your income or by offsetting it against your housing costs. Each sets its own rules. A legal, self-contained suite with a signed lease, or an appraiser's estimate of market rent, is treated most favourably.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 25.
Apply for your mortgage in minutes
Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 5.54% | 5.09% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.79% | Get this rate: 1 year fixed |
| 2 year fixed | 5.39% | 4.59% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.69% | Get this rate: 3 year fixed |
| 4 year fixed | 5.99% | 4.84% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.89% | Get this rate: 5 year fixed |
| 7 year fixed | 6.40% | 5.09% | Get this rate: 7 year fixed |
| 10 year fixed | 6.80% | 5.09% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
Contact us
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Contact info
Call, email or send us a message. We negotiate with over 50 lenders to find the right mortgage for you.
- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca