North Bay, Ontario · Member since 2016 · 5 posts · 2 votes
I'm new to real estate, and plan on purchasing a rental property within the next year or two with the intent on buying and holding it to earn passive income. A lot of books refer to the US market in terms of buying property, so i`m just wondering if it is possible to buy a property for low money down in Canada? Any input would be greatly appreciated!
The "conventional" downpayment on a residential property (1-4 unit) in Canada is 20% (or more).
High-ratio mortgages are available in Canada for owner occupied residential properties. These are insured through CMHC or one of the private insurers (Genworth or Canada Guaranty). For a single-family home or duplex you could have a downpayment as low as 5%. On a triplex or quadruplex the lowest downpayment possible is 10%.
If you were to go this route, one of the units in the property must be your primary residence. There will also be an insurance premium of up to 3.85% added to the principal of your mortgage.
Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes
9y
Lending requirements are different in Canada so you should have a conversation with your bank to find out what is the minimum down payment they would require. We have found that 10% is the minimum but not likely...20-30% is more likely to get approved. As for creative low money down strategies I will leave that to other BPers but I have not heard of very many of those happening in Canada...
The "conventional" downpayment on a residential property (1-4 unit) in Canada is 20% (or more).
High-ratio mortgages are available in Canada for owner occupied residential properties. These are insured through CMHC or one of the private insurers (Genworth or Canada Guaranty). For a single-family home or duplex you could have a downpayment as low as 5%. On a triplex or quadruplex the lowest downpayment possible is 10%.
If you were to go this route, one of the units in the property must be your primary residence. There will also be an insurance premium of up to 3.85% added to the principal of your mortgage.
Real Estate Agent · Irvine, CA · Member since 2016 · 224 posts · 142 votes
9y
@Roy N.is absolutely correct! Find yourself a good mortgage broker as well...I find they work harder and better for you than most bank reps. All the best