Mortgage On Rental Properties – Investment Property Mortgages
READY TO INVEST IN REAL ESTATE? Know about Rental Property Mortgages.
If you have questions about investment property mortgages, whether you’re a first-time landlord or building a portfolio, we can help! Book a call with us today.

INVESTMENT PROPERTY MORTGAGES.
Investment property mortgages differ significantly from regular home mortgages and require tailored planning to secure financing. In many cases, Calgary Mortgage Brokers provide valuable insights into securing appropriate loans. When investors purchase rental properties or income-generating real estate, Our Mortgage Team ensures that the mortgage options, requirements, and underwriting processes are well understood and effectively managed compared to those for owner‐occupied homes. This article provides an overview of investment property mortgages in Canada, detailing how they differ from regular mortgages, the necessary preparation, key factors influencing mortgage options, the differences between owner occupied and non-owner occupied properties (especially in Alberta), where Edmonton Mortgage Brokers may offer additional local expertise, and how property condition affects approvals.

Investment property mortgages in lethbridge, calgary & edmonton
Unlike conventional home mortgages—where lenders verify affordability with relatively lenient measures—Investment Properties come with additional risks. Generally, these mortgages require higher down payments, a stringent evaluation of cash flow, and different debt service ratios. lenders often collaborate with calgary mortgage brokers to assess the property’s income potential, management plan, and overall market conditions. investors are advised to consult our mortgage team for guidance, and for further details, Contact Us before moving forward. Investors must be prepared to meet these higher standards to protect lenders against potential defaults.
How do Investment Property Mortgages Differ From a Regular Mortgage in Canada?



What Should You Be Prepared For When It Comes to an Investment Property?
Owner Occupied vs. Non-Owner Occupied Rental Properties in Alberta


How Property condition affects rental mortgage approvals
Frequently Asked Questions
Q: What is the main difference between an investment property mortgage and a regular mortgage?
A: Investment property mortgages focus on the property’s income potential and cash flow, requiring higher down payments and interest rates, unlike regular mortgages, which emphasize personal income and creditworthiness.
Q: Why do investment properties require a higher down payment?
A: A higher down payment reduces the loan-to-value ratio and provides significant borrower equity, protecting lenders against potential losses from non-payment or market fluctuations.
Q: How does property condition affect mortgage approvals for investment properties?
A: A well-maintained property improves rental income potential, reduces unexpected repair costs, and leads to a stronger case for approval with more favorable mortgage terms.
Q: What financial documents are essential when applying for an investment property mortgage?
A: Key documents include recent tax returns, bank statements, proof of income, detailed property inspection reports, appraisal reports, and a comprehensive management plan.
Q: How do market conditions influence investment property mortgage options?
A: Local rental demand, occupancy rates, and economic trends affect lenders’ risk assessments, with stronger markets often yielding more favorable terms.
Q: What role does the DSCR play in securing an investment property mortgage?
A: The DSCR measures the property’s ability to generate sufficient income to cover its debt obligations, with a ratio above 1.2 being typically required.
Q: How can Mortgage Design Group assist me with investment property financing?
A: They provide expert guidance on documentation, pre-approval processes, market analysis, and tailored mortgage strategies to maximize cash flow, reduce expenses, and build a robust portfolio.
What if you’re looking to purchase a property that isn’t in the greatest condition?
This is where a purchase plus improvement mortgage is a great option! This type of mortgage allows you to purchase the property and include some of the renovation costs in the mortgage.
Contact Mortgage Design Group today to guide you to find the best return on your investment!
CONTACT US.
Let our mortgage brokers assess your potential investment portfolio today!
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info@mortgagedesigngroup.ca
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