What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
Tips for Saving for Your Investment Property in Toronto
For First-Time Home Buyers
Start Your Savings Journey: Open a dedicated savings account to build your Toronto investment property down payment over time.
Unlock Your RRSP Funds: Utilize the Home Buyers Plan to borrow up to $35,000 tax-free for your first home from your Registered Retirement Savings Plan (RRSP).
Maximize Your FHSA Benefits: Contribute up to $8,000 annually to a tax-deductible First Home Savings Account (FHSA) for tax-free withdrawals.
Secure Your Mortgage with CMHC: Qualify for a lower down payment in Toronto with a Canada Mortgage and Housing Corporation (CMHC) insured mortgage, making your entry more accessible.
Explore Shared Equity with CMHC: Dive into the CMHC First Time Home Buyer Incentive for shared equity ownership for Toronto real estate, ranging from 5% to 10%.
Get Tax Credits with HBTC: Claim 15% in tax credits (up to $1,500) for home buying costs as a first-time Toronto homebuyer with the Home Buyers Tax Credit (HBTC).
Join Forces in Joint Ventures: Partner with others to accelerate your entry into Toronto real estate and scale your investments faster.
For Seasoned Investors
Unlock Equity Through Refinancing: Restructure your mortgage to access equity from your existing home with the guidance of a financial advisor.
Diversify Your Portfolio Structure: Consider adjusting other investment holdings to enhance diversification and improve tax benefits by investing in Toronto real estate.
Optimize Joint Ventures: Continue exploring partnership opportunities to pool resources, spread out your Toronto investment property risk more effectively, and grow your real estate portfolio more quickly.
Revitalize Your Savings Plan: Start a dedicated savings plan specifically for your next Toronto investment property.
How to Qualify for a Mortgage for Your Toronto Investment Property
Check Your Credit Score: Lenders prioritize credit history when reviewing mortgage applications. Make sure your credit score is excellent by consistently paying bills on time and addressing any outstanding issues promptly. A strong credit score boosts your credibility as a Toronto real estate borrower.
Choose Toronto Investment Properties with Better Rent Yields: Opt for properties with appealing rent yields. Lenders may be more inclined to approve your mortgage if the potential rental income shows a solid return on investment. Research and select properties that align with your financial goals.
Pay Off High-Rate Debt or Restructure Existing Debt: Lower your debt-to-income ratio by paying off high-rate debts. Lenders evaluate your ability to manage multiple financial commitments. Consider restructuring existing debt to improve your financial standing and demonstrate responsible financial management.
Find Lenders Specializing in Toronto Investment Properties: Not all lenders are the same, and some specialize in investment properties. Seek out these lenders as they may have a better understanding of financing for investment purposes. Their expertise can streamline the application process and provide more tailored solutions.
Find a Partner or Guarantor: If your financial situation requires additional support, consider finding a partner or securing a guarantor. A partner can share the financial responsibility, while a guarantor provides a guarantee for the loan, increasing your chances of approval.
Look into Other Programs for Your Unique Situation: Explore specialized mortgage programs designed for specific situations, such as rental properties, high-net-worth individuals, non-residents, or small business owners. These programs may offer unique terms and conditions that better suit your circumstances.