Investment property down payment requirement?

by Raman
(Windsor Ontario)

Hello Tom and Nick,

I accidently found your website while searching for different real estate investment options today. I am new in real estate investment and not sure where to start from. One thing I would like to know is if I can buy an investment property with less than 20% down? We already own a house and would like to start investing to create our real estate portfolio. I would like to speak with you further on this topic or maybe discuss some investment oppurtunities in Toronto area. If possible could you please call me to discuss this further?

One last thing, I am really impressed with your real estate blog and the information you have on the site. It's really good information for someone like me who just started with no prior expereience. Thanks for sharing all this informaiton.

Looking forward to speaking with you.

Regards,
Raman Gill

Comments for Investment property down payment requirement?

Click here to add your own comments

Dec 13, 2012
RE: Special Investors Loans...
by: Tom Karadza

Hi Marie,

Thanks for the question.

There's still available just harder to come by. And sometimes they're not available for a few months and then a lender will pop up that allows them.

Basically, we hand these questions off to one of our mortgage brokers now because the options are constantly changing. But the still do exist but they're not CMHC programs because CMHC has a 20% minimum requirement. And because most banks use CMHC only as their mortgage insurer you may want to start chatting up some Mortgage Brokers to see what they can offer you as alternatives.

Tom

Dec 04, 2012
Special Investors Loans with 10-15% down?
by: Marie

Hello Tom,

You've mentioned on your site that your members have access to special investor loan programs offering 10-15% down payment. Is that no longer applicable based on your above answer?

Sincerely,
Marie

Nov 07, 2012
RE: Investment property down payment...
by: Tom Karadza

Hi Raman,

Thanks for the question!

It's difficult these days to buy with less than 20% down. There are some mortgage brokers who have access to private 2nd mortgages that will allow you to buy with 10% down but these options are not always available. Start interviewing mortgage brokers to gauge their experience with investors. Ask them how many investors they've worked with and ask them to explain the lending options to you. An experienced mortgage broker will have lots to share with you around this. Also, ask your bank what they can do for you as well. They are usually more conservative but occasionally they have really good options available that are not widely advertised.

Hope this helps!

Tom.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.

                  

  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.


  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.



  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.


This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.