Investors

People have long used real estate as a way to invest, in the hopes of financial freedom for themselves as well as their children.

The demand for Canadian real estate keeps growing, thanks to an exploding population. It’s no wonder you want to pull your hard-earned savings out and into an investment that generates wealth and holds value, like real estate.

If the property you’re buying isn’t a primary residence (a primary residence is defined as one you live in at least six months of the year), then the bank will require you to have a bigger down payment usually 20%.

Many investors use their home equity (which is the difference between the value of your home and how much you owe on your mortgage) as the down payment. Equity can be pulled from both your primary residence as well as any investment properties you have.

The number of units your property has will determine whether you need a residential or commercial mortgage.  Most buildings with 1-4 units are zoned residential. However, buildings with 5 or more units are zoned commercial, so a lender would require that you take out a commercial mortgage.

If it’s a multi-unit property, the second thing to consider is if you, the owner, will be living in one of the units or not. If you will be occupying one of the units, the property would be considered owner-occupied.

If all of the units will be rented out, your property would be considered non-owner occupied. 

Every potential investor should consider their goals, current financial situation and the current market conditions. Talk to Antoinette and see if the investment is the right fit for you.