Investor & Commercial Mortgage FAQs.

For a residential property (up to four units) that you will not live in, plan on a larger down payment than an owner-occupied home — commonly in the range of 20% or more of the purchase price, so the mortgage sits around 80% loan-to-value or lower. Some lenders and programs go higher or lower depending on the property, the unit count and your profile. Purpose-built rentals, mixed-use and commercial deals are underwritten differently again. The right figure for your deal comes out of the file, not a rule of thumb — see our Rental Property Mortgages and Investment Properties pages for how it works.

Usually yes — that is a big part of investor lending. Lenders will count a portion of the rent from the subject property and from other rentals you own toward your qualifying income. Exactly how much they credit varies: some use a percentage of gross rent, some net the rent against the property's costs, and some blend it into your overall debt ratios. Existing leases, market-rent letters and your cash flow all feed into it. The stronger and more documented the rent, the more it helps you qualify.

DSCR measures whether a property's income covers its debt. It is roughly the property's net operating income divided by its annual mortgage (and sometimes other) payments. A DSCR of 1.0 means the income exactly covers the payments; lenders typically want a cushion above that — often around 1.1 to 1.25 or higher, depending on the lender and property type — so there is room for vacancies and expenses. On commercial and multi-unit deals DSCR often matters more than your personal income. We model it up front on the Cash Flow Analysis page so there are no surprises.

As a general rule of thumb, residential financing covers one-to-four-unit properties, while five-or-more-unit apartment buildings, retail, office, industrial, mixed-use and pure land are treated as commercial. Commercial deals are underwritten on the property's income and lease strength as much as on you, use different products and timelines, and often require more due diligence. The line isn't always obvious — a large mixed-use building or a small plaza can go either way — so it's worth confirming early. See Multi-Unit Financing and Commercial Mortgages.

Often, yes. If you've built up equity, you may be able to refinance or set up a secured line of credit to free up funds for a down payment on the next property — a common way investors grow a portfolio without waiting to save fresh cash. How much you can access depends on the property's value, the lender's maximum loan-to-value and how the numbers qualify. It's a core strategy we map out on the Equity Take-Outs page.

There's no single fixed cap, but it does get more involved as your portfolio grows. Some lenders limit how many financed properties they'll hold for one borrower, and each new mortgage adds debt that has to keep your ratios in line. As you scale, lenders look more closely at overall cash flow, reserves and how the whole portfolio performs. Part of Paul's job is matching each purchase to a lender that still has appetite for your situation, so you can keep buying.

It's strongly recommended. A pre-approval tells you the price range and structure that realistically work, flags issues before they cost you a deal, and makes your offers more credible to sellers. For investors it's especially useful because rental qualifying and portfolio limits can be less obvious than a straightforward home purchase. Get set up on the Mortgage Pre-Approvals for Investors page before you start shopping.

Expect to provide personal income and identity documents (ID, income confirmation, tax returns and notices of assessment), plus property-specific items: current leases or market-rent letters, existing mortgage statements, property tax and insurance details, and a rent roll and expense summary for each rental you own. Commercial files add more — financial statements, environmental and appraisal reports, and lease details for tenants. Having these organized early keeps your approval moving; Paul will send a tailored checklist for your deal.

Instead of one lump sum against a finished property, construction and major-renovation financing is typically advanced in stages ("draws") as the work is completed and inspected, and it's underwritten on the projected finished value and your budget and timeline. Interest may apply only on what's drawn, and there's usually a plan to move to a regular mortgage once the project is done. It's more hands-on than a standard purchase — see Construction Financing for how the draws and timelines work.

Generally, financing for non-owner-occupied and commercial properties can price differently than an owner-occupied home, because lenders view them as higher risk. How much depends on the property type, unit count, loan-to-value, the strength of the income and your overall profile — commercial pricing in particular is quoted deal-by-deal rather than off a posted sheet. Rather than guess, the better move is to structure the deal well; a stronger file and cleaner cash flow often matter more to your bottom line than chasing a headline rate. Current posted options are on the Mortgage Rates page.