🏢 Investment Property Mortgages in Toronto & the GTA

The biggest difference between buying a home for yourself and buying an investment property is the down payment requirement. Investment mortgages generally cannot be insured by CMHC under 20%, so lenders want more skin in the game.

• 1–4 unit rental properties: Minimum 20% down payment.
  

• 5+ unit properties: Typically require 25%–35% down, depending on lender and property condition.
  

• Owner-occupied + rental (e.g., live in one unit, rent out the other): Can sometimes qualify with as little as 5–10% down if insured.
  

• Commercial mixed-use: Usually 25%+ down, with stricter cash flow tests.
  

Examples:

• $600,000 Toronto condo → $120,000 down (20%).
  

• $1,000,000 Burlington triplex → $200,000 down (20%).
  

• $2,500,000 Hamilton apartment building → $625,000 down (25%).
  

💡 Pro tip: Many investors use equity from their primary residence to fund their down payment. Through refinancing or a HELOC, you can access that equity without touching your savings.

The good news: lenders will let you use rental income to help you qualify for a bigger mortgage. The tricky part: each lender calculates it differently.

• Rental Offset (common with banks): 50–80% of the rental income is subtracted from expenses.
  

• Rental Add-Back (common with alternative lenders): 100% of the rental income is added to your gross income.
  

Example:

You buy a duplex in Mississauga renting for $4,000/month.

• At 50% offset, $2,000 reduces your expenses, lowering your debt ratios.
  

• At 100% add-back, $4,000 is added to your total income, letting you qualify for a larger mortgage.
  

👉 This is why broker strategy matters. By matching you with the right lender, we can maximize your affordability and help you scale faster.

The most successful investors don’t stop at one property. They leverage their existing equity to buy more.

• Refinancing: As your property appreciates, refinance to pull out equity for your next down payment.
  

• HELOCs (Home Equity Lines of Credit): A flexible, interest-only option to fund purchases or renovations.
  

• BRRRR Strategy (Buy, Renovate, Rent, Refinance, Repeat): A powerful method for building long-term wealth and recycling your capital.
  

Example:

• You buy a $700,000 Hamilton duplex with $200,000 down.
  

• After renovations, it’s worth $900,000.
  

• Refinance at 80% loan-to-value = $720,000 mortgage.
  

• Original mortgage = $500,000 → New equity available = $220,000.
  

• That equity funds the down payment on your next property.
  

As your portfolio grows, banks may start limiting how many properties you can own or how much exposure they’ll take. This is where specialized financing comes in.

• Private Mortgages: Useful for short-term deals, flips, or when properties don’t meet traditional lender guidelines.
  

• Commercial Financing: For 5+ unit buildings, with lending decisions based more on the building’s cash flow than your personal income.
  

Banks don’t love investors. Here’s why working with a broker makes the difference:

• We work with lenders that allow 10+ properties and flexible portfolio strategies.  

• Alternative & private lenders often offer faster approvals for time-sensitive deals.
  

• We build financing strategies around your long-term portfolio goals, not just the next purchase.
  

• Banks only offer their own products, and many cap you at 4–5 rental properties.
  

• ✅ Multi-Unit Expertise: We specialize in financing multiplexes, rental condos, and apartment buildings.
  

• ✅ Investor-Focused Lender Network: 50+ lenders including banks, B-lenders, and private options.
  

• ✅ Cash Flow Strategies: We know how investors analyze deals — and we’ll match financing to your ROI targets.
  

• ✅ Local GTA Market Knowledge: Toronto, Mississauga, Oakville, Burlington, Hamilton.
  

• ✅ Step-by-Step Support: From your first rental condo to building a 100+ door portfolio.