Buying an Investment Property? Follow These Steps to Ensure Your Mortgage is Approved

Marci • October 27, 2014

Are you thinking about buying a house, condo or multi-unit residence as an investment property? If you plan on applying for mortgage financing to cover some of the up-front purchase costs you’ll need to be prepared and understand what’s required to ensure that your application is approved. In today’s blog post we’ll share a few tips regarding mortgages for investment properties and what you’ll need to have ready.
Happy Young Couple Discussing With Consultant

Will You Be Living in One of the Units?

An important consideration when buying an investment property is whether or not you’ll be living in one of the units – a situation referred to as “owner-occupied”. This is a key consideration and will impact how much of a down payment a lender will expect from you, your mortgage default insurance and more. For example, if your property will be occupied by renters you’ll likely need a down payment of 20 percent or more, while an owner-occupied property will typically be closer to 5 to 10 percent.

Know Your Numbers Inside and Out

You’ll also want to have a good grasp of your numbers and how small changes can affect your ability to pay back your mortgage as your lender will absolutely know these details. Spend some time researching and calculating your gross debt service ratio (or “GDS”) and total debt service (or “TDS”), which indicates how much mortgage you can reasonably afford on the property after interest, taxes, other debts and rental expenses are taken into consideration.

Understand Your Zoning and How It Affects Your Mortgage

The zoning of your investment property is another key factor that can drastically change your mortgage. For example, if you have a small four-unit townhouse complex you may have a strict residential zoning which will allow you to take out a mortgage much like the one on your own home. However, if you are buying a small apartment or condo development with a number of units it may have mixed zoning or be zoned for commercial use, in which case you’ll be expected to take out a commercial real estate mortgage.

If It’s a Business, Treat It Like One

If you’re going to be running your investment property like a business, it’s best to treat it like one from the start. If you have a business plan and marketing plan for the residences, be sure to have this information put together and be ready to show it to your lender. As with any loan, your financier wants to ensure that they are taking on as little risk as possible. The more that you can show that you are ready for real estate investing and that you have a quick path to profitability, the less risky your loan will appear to be.

Buying an investment property is an excellent way to diversify your portfolio while adding a long-term asset that can provide an immediate income stream. Contact me by phone or email today and I’d be happy to share my mortgage expertise to help ensure that your financing has the best chance of being approved.

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Everything You Need to Know About Second Mortgages

By Marci Deane • May 6, 2026
What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.

Bank of Canada Holds Rate at 2.25% — April 29, 2026

By Marci Deane • April 29, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.

Your Guide to Successfully Navigating the Housing Market

By Marci Deane • April 22, 2026
Wondering If Now’s the Right Time to Buy a Home? Start With These Questions Instead. Whether you're looking to buy your first home, move into something bigger, downsize, or find that perfect place to retire, it’s normal to feel unsure—especially with all the noise in the news about the economy and the housing market. The truth is, even in the most stable times, predicting the “perfect” time to buy a home is incredibly hard. The market will always have its ups and downs, and the headlines will never give you the full story. So instead of trying to time the market, here’s a different approach: Focus on your personal readiness—because that’s what truly matters. Here are some key questions to reflect on that can help bring clarity: Would owning a home right now put me in a stronger financial position in the long run? Can I comfortably afford a mortgage while maintaining the lifestyle I want? Is my job or income stable enough to support a new home? Do I have enough saved for a down payment, closing costs, and a little buffer? How long do I plan to stay in the property? If I had to sell earlier than planned, would I be financially okay? Will buying a home now support my long-term goals? Am I ready because I want to buy, or because I feel pressure to act quickly? Am I hesitating because of market fears, or do I have legitimate concerns? These are personal questions, not market ones—and that’s the point. The economy might change tomorrow, but your answers today can guide you toward a decision that actually fits your life. Here’s How I Can Help Buying a home doesn’t have to be stressful when you have a plan and someone to guide you through it. If you want to explore your options, talk through your goals, or just get a better sense of what’s possible, I’m here to help. The best place to start? A mortgage pre-approval . It’s free, it doesn’t lock you into anything, and it gives you a clear picture of what you can afford—so you can move forward with confidence, whether that means buying now or waiting. You don’t have to figure this out alone. If you’re curious, let’s talk. Together, we can map out a homebuying plan that works for you.