Real Estate

What's a good mortgage rate for an investment property

  • Last Updated:
  • Dec 18th, 2020 6:00 pm
[OP]
Newbie
Sep 14, 2019
70 posts
34 upvotes

What's a good mortgage rate for an investment property

Hi guys, just wanted to see what you guys have gotten or have been getting by way of a mortgage rate for an investment property. We're going to be closing in the next little while so I just want to be prepared. Thanks
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7 replies
Member
Nov 12, 2019
345 posts
541 upvotes
It's typically slightly higher than primary residences. I'd say anything less than 0.2% higher than what you get as a primary would be a good rate.
Sr. Member
Feb 28, 2009
634 posts
429 upvotes
Ottawa
I’m in ottawa and was able to secure 1.79 5 year fixed through a broker with 30 yr amort
Jr. Member
User avatar
Aug 14, 2020
173 posts
163 upvotes
Hamilton, ON
The first 2 responses are good, but rate isn't the only consideration.
If you have more units then your rates start to go up - somewhere after 4 doors.
Also, if you need a more beneficial rent income calculation to make your debt service numbers work the rates will be higher too.

It may be worth it paying a slightly higher rate sometimes because you can still get the deal done, and maybe with a lower down payment i.e. 20-25% down vs. 30-35% down.
A good broker will find the sweet spot between getting the best rate as well as the best conditions.
_



Getting a mortgage is like writing a test...except you're allowed to work with someone who knows the answers!

Kirby Reschny
Mortgage Agent
Real Mortgage Associates (FSRA #10464)
Member
Oct 14, 2010
217 posts
133 upvotes
Toronto
I too want to know this....we just broke our fixed mortgage with CIBC, and they wouldn't go lower than 1.73 on the new variable...
Member
Feb 7, 2018
313 posts
410 upvotes
WGretzky wrote: I’m in ottawa and was able to secure 1.79 5 year fixed through a broker with 30 yr amort
Hi WGretzky can you PM me the broker who got you this deal?
Member
Aug 19, 2013
347 posts
295 upvotes
Etobicoke
Recently got 1.47 5 yr variable 30 AM for a rental from TD. It's from a TD branch near to my house. So, YMVV but should work for other locations. North Etobicoke location.

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