approvU for Rental Property Mortgages

Knowing the minimum requirements to qualify for a rental property mortgage can help make the process an enjoyable experience.

You will need to provide and confirm details about your income, debt, down payment, credit record, and assets for you and your co-borrowers, as well as the complete details about the rental property.

In addition to the above, you will need to provide the signed Lease or Rental Agreement to confirm that the property is ready to start generating income.

Generally, you should expect a slightly higher rate for rental property mortgages than those secured with owner-occupied properties from the same lender. 

Since the rental income is meant to pay down the mortgage, there is a payment risk, assuming your tenant does not make the rent payment in time. Lenders consider this risk when considering the mortgage rate for rental properties.

Knowing the minimum requirements to qualify for a rental property mortgage can help make the process an enjoyable experience.

You will need to provide and confirm details about your income, debt, down payment, credit record, and assets for you and your co-borrowers, as well as the complete details about the rental property.

In addition to the above, you will need to provide the signed Lease or Rental Agreement to confirm that the property is ready to start generating income.

Yes. You can use approvU to refinance the mortgage on your rental property. 

After selecting the Refinance transaction type, you’ll choose “I’ll Rent.” That tells the system that you’re refinancing a rental property. 

There are thousands of refinance mortgage solutions on approvU from its over 25 mortgage lender partners. As long as you qualify, you will find the best refinance mortgage options on approvU. Get started:

The minimum down payment for a rental property mortgage is 20% of the house value. If the house is priced or valued at $400,000, you will need to put down at least $80,000. If the house is instead priced at $1,200,000, your minimum down payment will be $240,000.

However, depending on your situation and needs, some lenders may require you to put down up to 35% of the house value to qualify for their mortgage.

That’s why you should use a platform like approvU to ensure that you are shopping across lenders with varied qualification criteria, in order to get the best deal in the market that suits your needs and situation.

You can’t apply for a mortgage under a corporation with approvU. You can reach out to mortgage agents and brokers or go directly to your bank for such a type of mortgage.

However, if you are looking at getting a mortgage under your name, then approvU is the smartest way to get the right mortgage without the stress and headaches of the traditional mortgage process. The approvU platform allows you to search and apply for a mortgage online, just like shopping on Amazon.ca.

Lenders do set a maximum limit of rental properties you can have to qualify for their rental property mortgage. This limit is two-fold. There is a limit to the number of rental properties mortgaged with a specific lender, and a limit to your overall rental mortgage portfolio, even if they are mortgages from other lenders.

Beyond a certain number of rental properties, you’ll be considered a commercial investor. That is a different beast.

There is no standard rule for these two situations. Some lenders will only allow you up to two properties with them. Others may go up to as many as six properties.

On the other hand, it could lower the limit of the number of properties in the rental portfolio to three. Some lenders will accept a rental portfolio of up to 12 properties.

You can use approvU to shop the market for lenders with flexible qualifications for rental property mortgages, to ensure you are not losing out on the best deals.