Investment Property Mortgages in Canada: How to Build Wealth with Real Estate

If you’ve ever dreamed of earning income through property, you’re not alone. Thousands of Canadians are turning to real estate investing as a smart, stable, and scalable way to build long-term wealth. But before you buy that second home or rental unit, you need to understand one crucial piece of the puzzle, the investment property mortgage.

Whether you’re an experienced investor or just getting started, this guide will walk you through how investment property mortgages work in Canada, what lenders look for, and how to get the best rates possible.

What Is an Investment Property Mortgage?

An investment property mortgage is a home loan used to purchase real estate that you intend to rent out or hold as an investment not live in. Unlike a primary residence mortgage, investment loans have slightly stricter requirements because lenders see them as higher-risk.

In simple terms:

You’re buying a property to make money, not to live in it.
The property can be a condo, duplex, townhouse, or multi-unit home.
The mortgage terms, rates, and down payments differ from regular residential mortgages.

Key Requirements for Investment Property Mortgages in Canada

Before you apply, here’s what lenders will expect:

1. Larger Down Payment

For a non-owner-occupied property, Canadian lenders typically require:

Minimum 20% down payment (some may ask for 25%)
This cannot be borrowed; it must come from your savings or equity.

If you plan to live in one unit and rent the others, you may qualify with as little as 5–10% down, depending on the property type and your credit score.

2. Strong Credit Score

To secure the best investment property mortgage rates in Canada, you’ll want:

A credit score of 680+ for traditional lenders (banks, credit unions)
A minimum of 620 if applying through an alternative or B-lender

3. Proof of Rental Income

Many lenders will include up to 50–80% of your projected rental income in your mortgage qualification.

That means rental income can help you qualify for a larger loan, but you’ll need proof, such as:

A signed lease agreement, or
A market rent appraisal from a certified professional.

4. Lower Debt-to-Income Ratio

Your lender will check your GDS (Gross Debt Service) and TDS (Total Debt Service) ratios to ensure you can manage multiple properties comfortably.

How to Use Real Estate to Build Wealth

Real estate investing isn’t just about buying homes it’s about building long-term, passive income and growing your net worth. Here’s how smart Canadian investors do it:

1. Buy and Hold

Purchase a property, rent it out, and hold it for years while it appreciates.
You earn monthly rental income and long-term capital gains when the property value rises.

2. Refinance and Reinvest

Once your investment property appreciates, you can refinance it to access home equity.
Use those funds to buy another property a strategy known as the BRRRR method (Buy, Renovate, Rent, Refinance, Repeat).

3. Diversify Across Markets

Don’t limit yourself to one city. Markets like Surrey, Langley, Abbotsford, and Kelowna offer strong rental demand, especially with growing populations and limited housing supply.

4. Take Advantage of Tax Benefits

In Canada, you can deduct many expenses from your rental income, including:

Mortgage interest
Property taxes
Maintenance and repairs
Insurance
Property management fees

Always consult a tax professional to ensure you’re maximizing deductions legally.

Mortgage Options for Real Estate Investors in Canada

When financing an investment property, you have several options:

Conventional Mortgage

Offered by major banks and lenders
Best for borrowers with strong income, credit, and down payment
Fixed or variable interest rates

Alternative (B-Lender) Mortgage

For those with lower credit scores or unique income situations
Slightly higher rates, but easier qualification terms

Private Mortgage

Best for short-term investors or those who don’t meet traditional lending criteria
Quick approval and flexible repayment, ideal for house flippers or bridge loans

Working with a licensed mortgage broker like Home Ease Mortgages gives you access to all three and ensures you get the lowest possible rate for your situation.

Why Work with a Mortgage Broker for Investment Properties?

Getting an investment mortgage is more complex than applying for your first home. A mortgage broker acts as your guide through that process, helping you:

Compare rates from multiple lenders
Strategize to maximize rental income qualification
Avoid common investor mistakes
Understand tax-efficient mortgage structures
Save time, money, and stress

At Home Ease Mortgages, our experts work with real estate investors across BC and Canada to help them:

Build long-term wealth
Access the best rates and terms
Make confident, informed property investment decisions

Ready to Build Your Real Estate Portfolio?

Whether you’re buying your first rental condo or your fifth investment property, your mortgage strategy matters.

A smart financing plan can mean the difference between a profitable investment and a financial strain.

At Home Ease Mortgages, we simplify the process, from pre-approval to closing, with expert advice, personalized support, and access to Canada’s top mortgage lenders.

Let’s Build Your Future Together

Start your investment journey today with Home Ease Mortgages. Serving Surrey, Fraser Valley, and all of Canada. Visit: homeeasemtgs.com