A revenue property mortgage is required if the property you wish to purchase is classified in part or in whole, as an investment property. Because of this classification, the qualifying rules can vary from a primary residential mortgage.
When looking at multi-unit property, if you, the owner, will be living in one of the units then the property would be considered owner-occupied. If all of the units will be rented out and therefore you did not occupy one of the units, your property would be considered non-owner occupied. The major difference between the two is how much down payment is required.
Some lenders may look at 5% down, 10% if there are 3 – 4 units, and 20% if it’s a non-owner occupied revenue property. Keep in mind though, if the purchase price is over $500,000 then the minimum down payment for owner-occupied properties is equal to 5% of the first $500,000, plus 10% of any amount over $500,000.
As different lenders have different requirements, it is best practice to review your financial situation, discuss your goals, and review the property details to find the best mortgage product available.
We pride ourselves on matching our customers to the right mortgage product. Click below to view all of the mortgage types we offer, including progress draw mortgage, variable rate mortgage and fixed rate mortgage.
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