Investment Property Mortgages: Run the Numbers

Rental income helps cover the costs, but it doesn't remove the risk of vacancies, repairs or rule changes. A lender looks at both you and the property.

The short answer: A lender won't necessarily count all your rental income. Ask how much they'll use and which expenses they factor in.

Do your own cash flow

Estimate rent conservatively. Then subtract:

Vacancy
Repairs and maintenance
Insurance and property taxes
Property management

Set aside money for big-ticket items like a roof or furnace. A property can qualify for a mortgage and still lose money.

How lenders count rent

Lenders use different methods. Some may want leases or a rental appraisal. The number of units, and whether you live there, can change your options.

Test the worst case

Could you keep paying the mortgage if the unit sat empty for a few months while you paid for a big repair? Keep cash on hand rather than counting on borrowing more later.

Legal suites and local rules

A basement suite isn't automatically a legal rental unit. Check zoning, tenancy rules and insurance. Short-term rentals need extra care, since rules in BC and many municipalities have changed. Talk to an accountant about tax.

Plan your exit

Compare your mortgage term to how long you plan to hold the property. Selling or refinancing mid-term can mean a penalty.

Related guides

Let's talk it through

Book a call and we'll go over your options with you.

Alberta: 587-900-0036 | BC: 604-200-3228

These guides are general information, not a mortgage offer or personal advice. Every approval depends on lender review of your income, credit, property and documents. Elevate Lending, powered by BRX, serves clients in Alberta and British Columbia.