B.C. Rental Property Financing
How you can benefit from rental income without doing any work
Build wealth by investing in a B.C. rental condo, townhouse or home.
Build wealth by investing in a B.C. rental condo, townhouse or home.
If you invested in residential real estate anywhere in the Lower Mainland, Fraser Valley or the Interior in the past 20 years, chances are good your property is now worth substantially more than what you paid for it.
B.C. residential real estate has outpaced many other investments. This, combined with the steady demand for rentals, can make buying an investment property a sound financial move.
Leverage the equity in your home to establish a steady passive income stream.
Leverage the equity in your home to establish a steady passive income stream.
As a homeowner, you've already built up equity in the home you own.
A rental property mortgage leverages that equity, allowing you to purchase an investment condo or rental home without putting up any cash. This simple strategy can be used to develop a passive monthly income stream to service the rental property mortgage and cover any additional costs such as strata fees and property taxes.
Not only can this mean your rental property costs are completely covered by your tenants, but with the right rental mortgage, you'll also be growing your wealth as property values rise over time.
Ready to level-up your property investment plan?
Ready to level-up your property investment plan?
When you're ready to take the next steps towards your rental property purchase, we're here for you.
The Silverman Mortgage Group specializes in investment property financing throughout Greater Vancouver and the surrounding areas.
Click here to get started. For more information read our rental property mortgage guide below.
The Mortgage Retirement Plan
Jordan de Brouwer
"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."
Leah Allen
"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."
Reid Arkinstall
"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."
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Our team of all licensed experts is available to help you grow your real estate portfolio
Here are some articles that share great information as you consider mortgage financing.
What Banks Won't Tell You About Mortgage Financing
Working with a single financial institution significantly limits your options when considering mortgage financing, especially if your financial situation isn’t straightforward.
Benefits of Working with an Independent Mortgage Professional
Simply put, an independent mortgage professional works for you and has your best interest in mind, while a bank specialist works for the bank and has the bank’s best interest in mind.
GDS/TDS Ratios Explained
One of the major qualifiers lenders look at when considering your application for mortgage financing is your debt service ratios. Learn more about how your gross debt service ratios (GDS) and total debt service ratios (TDS) impact your mortgage qualification.
Standard or Collateral Charge Mortgage. What's best for you?
When arranging mortgage financing, your mortgage lender will register your mortgage in one of two ways. Either with a standard charge mortgage or a collateral charge mortgage. Learn more about the differences here.
4 Ways to Access your Home Equity
If you've been a homeowner for many years, likely your property value has increased significantly. One advantage of homeownership is the opportunity to build equity. Learn more about how you can access your home equity.
The Property Matters in Mortgage Financing
When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, you’re going to get some pushback from the lender. Learn more about why the property matters to the lender here.
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It’s a commonly held belief that if you’ve made your mortgage payments on time throughout the entirety of your mortgage term, that the lender is somehow obligated to renew your mortgage. The truth is, a lender is never under any obligation to renew your mortgage. When you sign a mortgage contract, the lender draws it up for a defined time, so when that term comes to an end, the lender has every right to call the loan. Now, granted, most lenders are happy to renew your mortgage, but several factors could come into play to prevent this from happening, including the following: You’ve missed mortgage payments over the term. The lender becomes aware that you’ve recently claimed bankruptcy. The lender becomes aware that you’re going through a separation or divorce. The lender becomes aware that you lost your job. Someone on the initial mortgage contract has passed away. The lender no longer likes the economic climate and/or geographic location of your property. The lender is no longer licensed to lend money in Canada. Again, while most lenders are happy to renew your mortgage at the end of the term, you need to understand that they are not under any obligation to do so. So how do you protect yourself? Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you. When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options. Also, dealing with an independent mortgage professional instead of directly with the lender ensures you have someone working for you, on your team, instead of seeking guidance from someone with the lender’s best interest in mind. So if you have a mortgage that’s up for renewal, whether you’re being offered a renewal or not, the best plan of action is to protect yourself by working with an independent mortgage professional. Please connect anytime; it would be a pleasure to work with you!
When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, if you don't have a plan, you might get some pushback from the lender. The property matters to the lender because they hold it as collateral if you default on your mortgage. As such, you can expect that a lender will make every effort to ensure that any property they finance is in good repair. Because in the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can sell the property quickly and recoup their money. So when assessing the property as part of any mortgage transaction, an appraisal is always required to establish value. If your mortgage requires default mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty, they’ll likely use an automated system to appraise the property where the assessment happens online. A physical appraisal is required for conventional mortgage applications, which means an appraiser will assess the property on-site. So why is this important to know? Well, because even if you have a great job, excellent credit, and money in the bank, you shouldn’t assume that you’ll be guaranteed mortgage financing. A preapproval can only take you so far. Once the mortgage process has started, the lender will always assess the property you’re looking to purchase. Understanding this ahead of time prevents misunderstandings and will bring clarity to the mortgage process. Practically applied, if you’re attempting to buy a property in a hot housing market and you go in with an offer without a condition of financing, once the appraisal is complete, if the lender isn’t satisfied with the state or value of the property, you could lose your deposit. Now, what happens if you’d like to purchase a property that isn’t in the best condition? Being proactive includes knowing that there is a purchase plus improvements program that can allow you to buy a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, there’s a process to follow, but it’s very doable. So if you have any questions about financing your next property or potentially using a purchase plus improvements to buy a property that needs a little work, please connect anytime. It would be a pleasure to walk you through the process.