Buying a home is one of the most important and exciting steps in your life.... now that pesky financing! Deal with people who can offer you and your family the best options for you.

CONSIDERING A REVENUE PROPERTY IN SASKATOON?

When it comes to a revenue property having options and the best rate possible are at the top of the list. 

Buying an investment property is a popular option for Canadians looking at different ways to invest their money. However, unlike the mortgage you took out on your principal residence, financing an investment property is a little more complex. 

1. How Many Revenue Properties

The number of units in the building and whether or not you'll be occupying one of the units are the two major components that control what your financing will look like. When you start shopping around for an investment property, the first thing you need to consider is the number of units your building will have. Most buildings with 1-4 units are zoned residential, so the qualification criteria and financing options from lenders are only slightly more difficult than that of a mortgage similar to what you have on your principal residence. 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.

However, buildings with 5 or more units are zoned commercial, so a lender would require that you take out a commercial mortgage on it. With a commercial mortgage, the qualification criteria is even tougher to meet and interest rates are often much higher. 

2. Downpayment 

An investor will have to put down at least 20 percent to buy a property from a typical bank... On top of the down payment, an investor will have to pay closing costs, which can range from two to four percent of the loan amount.