Purchasing an investment property

WE HAVE A MORTGAGE SOLUTION FOR YOUR UNIQUE SITUATION

YOU’VE BEEN WAITING. YOU’VE BEEN SAVING.

WHY PURCHASE AN INVESTMENT PROPERTY?

There are several good reasons to Purchase an Investment Property. One, you can use it to generate profit through rental revenue or asset appreciation. You can also take advantage of certain tax deductions, particularly if you rent out the property. Expenses for repairs, maintenance, supplies, insurance premiums, cleaning, and management are just some of the allowable deductions that can help reduce your overall tax.

Things to consider when taking out an investment property loan:

If you want to Purchase an Investment Property, your credit score should be higher than if you were buying a primary residence or even a second home. To be approved, aim for a credit rating of 660+. If your credit is higher, you can expect to get the best mortgage loan interest rates.

Aside from having a higher interest rate, an investment property loan also typically requires a higher down payment.

When choosing a property, remember the rule of 1%. This means the property should allow you to get a 1% gross monthly return on your investment.

Should you declare a property as a second home instead of an investment property?

Many people have struggled with the same question. After all, it would be less expensive to borrow money for a property that you are going to use for personal pleasure. However, lying to your lender is not only unethical, it is also a crime. Mortgage fraud is a serious offense that carries with it heavy fines. Thus, it is important to be truthful in your loan application.

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