Residential/commercial property

by Pat
(Mississauga)

I am looking into buying a property in Burlington and it is mixed of Residential and commercial property together. I am planning to rent out the house and the shop(it has a tenant now). What kind of mortgage do I get? How much down payment do I have to put? I am not going to live in that property so do I have to announce it to Income tax? What about insurance etc?
Please help.

Comments for Residential/commercial property

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May 16, 2017
Residential/commercial property
by: Tom

Thanks for the question!

You need a good commercial mortgage broker, it's likely a commercial mortgage you need. Down payments for commercial mortgages can be as low as 15% down if they're insured (but that's only for large scale 100% residential properties like apartment buildings that use commercial financing). For the property you are describing the down payment is likely going to be higher than that.

I would reach out to some mortgage brokers and ask if they have experience with these types of properties. They'll be able to confirm all of this with you quickly.

In Canada, if the property is owned by you personally then yes you have to claim the income from the property on your taxes even if you don't live in it.

Also, you definitely need a proper insurance policy on the property.

We're not mortgage brokers or accountants so confirm all of this with the proper professionals but we would start with a good commercial mortgage broker.

Hope that helps!

Tom

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