Message From Author

Paramjit S. Girn

Welcome! Besides preparing quality content, we help Ontario residents leverage their time and banks money efficiently to make them mortgage free quicker. Having said that, allow me to invite you to meet our licensed mortgage expert for an eye opening, no obligation mortgage strategy session. Everyone who attends it, loves it. We are almost certain you will too.

From the table below, select the scenario that best describes your situation

YOU CAN USE THE FOLLOWING INFORMATION TO GUIDE YOU:

Selections compiled will give you a good picture of where you stand and an estimation of your CID profile that will afford you a real advantage as a real estate investor. Your decisions in this journey will affect you for life, so make them informed and put your best foot forward!

Credit
SCORE
Verifiable
INCOME
Down
PAYMENT
Meet With an Expert
SEND YOUR AVAILABILITY
Good Good 20% Or More

Book Me In
Here’s My Availability

Not Sure Good 20% Or More

Am Confused About My Credit
Here’s My Availability…

Good Not Sure 20% Or More

My Home Equity Worries Me
Here’s My Availability…

Good Good Not Sure

I Am Confused, Like to Meet
Here’s My Availability…

It is complicated It is complicated It is complicated

I Need an Experts Opinion
Here’s My Availability…

Whether you are looking for your first rental property or trying to remortgage one of your rental properties, know you CID profile and should consider following information as a guide to the table above:

Credit Score:

A credit score of more than 680 is good but again, best you hire a mortgage planner to help iron out any inaccuracies that might be in your report. Following are guiding criteria in selecting options for the table below. Select “Not Sure” if any of the following situations apply to you:

  • You do not have a credit rating because you are new to the country, have been discharged from a proposal or have previously gone bankrupt
  • Your credit score is less than 680
  • You have never used a credit card, preferring to rely on cash
  • You have a history of late payments in the last three years
  • Unpaid bills have been forwarded to collection agencies in the last three years
  • You’ve never checked your rating and simply do not know

If you have any questions about your credit score,  contact us  we can help!


Sufficient Verifiable Income:

Your sufficient verifiable income is comprised of your gross income available for payment of all debts as per lender requirements. Income that qualifies cannot be income derived from probationary periods and must accompany proof of employment such as letters, recent pay stubs, and notice of assessments or TI Generals.

Keep in mind as well that income requirements differ from product to product. Don’t hesitate to contact us for more information!

On the table above, select “Not Sure” if any of the following situations apply to you:

  • Much of your income is cash (for example commission or tips)
  • You are in business for yourself (BFS)
  • You are presently on employment insurance, maternity leave or similar
  • Your total income before taxes is less than $50K a year
  • You have no rental income, only vacant properties

If you still have questions about your income status, give us a call!


Home Equity/Down Payment

On the table below, select "Not Sure” if any of the following situations apply to you:

  • Your home equity (for refinance) or Down Payment (For purchase) is less than 20%
  • You use secured or unsecured lines of credit
  • You don’t know what your home equity status is

If you have any questions that can help you determine your home equity status, give us a call!

To quickly assess and position yourself for rental property mortgages – be it first-time or refinancing – select scenarios from the table below that apply to you for your CID profile. It will help you to make an informed decision about the many products available:


Return On Investment (ROI)

Rental property mortgages can appeal to those who want to make money and like the idea of real estate investments. They are also of interest to those who already own other properties and want to re-finance or simply acquire more. The bottom line is smart investing.

Understanding as much as you can about rental property mortgages and how to leverage your hard-earned money will, no doubt lead to a generous ROI (return on investment). You want to be sure you will maximize your time, energy and precious dollars! Whether you are looking for your first rental property or trying to remortgage already existing ones, a grasp of the basic principles that influence ROI is just common sense. Regardless of what financial institution or lender you are working with, this is something you want to be smart about.

You’ll be glad to hear that investments of this kind hold great potential for money making. To paint you a picture, let’s say you put 20% down on a rental property. The monthly rent covers all your expenses. Over the years, the property value only increases by about 3% annually.

12% is your annual return on investment (roi).

For some this is a lucrative opportunity they simply cannot resist.


Rental Property Mortgages: What Should You Know?

Fraud is rampant when it comes to rental property mortgages, and only 4% of Canadians invest in rental properties. These two facts combined have had significant impact on the formation of lending rules in the mortgage industry – especially for rental property mortgages. Whether you are looking for your first property or trying to re-mortgage an existing rental property, you should consider the following:

  1. Minimum equity or down payment should be 20%.
  2. Knowing your long term investment goals will assist you in asking the right questions. For example, how many properties do you have in mind? And what areas are you considering? Planning ahead with a good team of advisors will help to demonstrate to others your attractiveness as a low risk client.
  3. More documents are likely required for the lender and a prepared client is always more appealing as a prospect for any lender
  4. Every dollar of your rental property mortgage should generate at least $1.20.
  5. Have ready proof that your down payment is not borrowed by ensuring your bank account has had this money for at least three months. Alternatively, if your down payment is coming from the sale of another property you will need to have documentation of agreement of purchase and sale along with a recent mortgage statement, so your lender is confident about how much money is yours.
  6. The more properties you acquire the less options you will have in terms of prospective lenders who are willing to work with you
  7. No matter what, never hold back information from your mortgage advisor – it can come back to hurt you later by interfering with your mortgage approval. Remember, we are on your side! Full disclosure helps us to help you.

In Real estate Investing Leverage is Everything

Contrary to the general believes the current state of residential real estate is stable. Acquiring a rental property by leveraging banks money via mortgages will provide you with considerable leverage in your investment. This, in turn, will offer a substantial boost on your return on investment. What you are aiming for is to use as little of your capital as possible – doing so will allow you to invest in more properties.

Take a Look at The 2 Scenario's Below To Learn More About ROI;

Let’s say you purchase at $100K and put 25% as down payment. After a Five-year holding period with your rental property mortgage you can sell for $200K, making a handsome profit in the process.

You purchase a property at $100K with 100% cash, which is the old way of doing real estate. Yet you can still sell at $200K after five years.


Knowledge Is Power

Investing in rental property is a very different ballgame than buying a house to live in. As always, focusing on interest rates alone, even with rental property mortgages, is always a mistake. You want to carefully consider the bigger picture at hand. Self-education is critical to securing the most prosperous arrangement unique to your situation.

This is why a No Fee Mortgage Strategy Session is so important. You can learn facts that typically remain hidden from public view, and leverage Mortgage Delivery Guy’s experience in investing in real estate based strictly on the basis of cash flow analysis. We will discuss your short and long term rental property mortgage goals and customize a plan to maximize your ROI.

Meet with an expert on rental property mortgages today and learn eye-opening facts that will shape a more prosperous future! We have a holistic approach to real estate investment, and will offer competent guidance on the best course of action in managing your multiple mortgages and maximizing your return on investment (ROI). Simply click the link below and send us your availability and we will confirm your meeting time and date.