n 1982, the average five-year interest rate for mortgages in Canada hovered at about 17.89 percent. In 1992, rates slipped below 10 per cent and steadily declined, reaching a 20-year low in 2004 at 4.00 per cent. Today rates for a five-year mortgage average out at about 5.24 per cent, making buying and owning real estate a smart investment indeed.
The biggest issue for those considering becoming a rental property (or investment property) owner is how to come up with the down payment. It’s nearly impossible for most to even imagine putting 25 per cent down on a building that could be worth several million. A mortgage broker works with a number of different lenders, and is in a very good position to supply a range of mortgage options suitable for just about anyone.
Mortgages By Candice can locate lenders that allow lower down payments on investment properties. You may also want to discuss options for using equity from any existing properties you own to access an adequate down payment. Joint ventureship is another choice you could consider, and it’s possible to take out loan insurance on high ratio mortgages in order to help with qualification.
It could be a combination of one, two or several options that gets you on the right track towards reliable investment income. With solid rental property purchase strategies, you will not only reap the benefits from a strong local market where real estate values either stay steady or increase, you will also be able to use the revenue coming in from your tenants towards future projects and investments.