[quote user=derrick1032]Hello, I am currently in the process of attaining my third revenue property and I am seeking a lender in the Calgary area who will play by the 1.1 rule that I've read about in Dons books. I am not at my debt service wall yet, but after this one I will be and figured I would try to build a relationship with a lender ahead of time.
Firstline was and is the only lender that used the 1.1 rule. They still have the policy, but it has undergone many changes and now is quite restrictive. Most applications through Firstline now will require 25% to 35% down as they only use a 25 year amortization on the subject property.
If you are not at your debt service wall now, then there is no reason that you should be later if you keep buying positive cash flow properties. Many lenders will use a 70 or 80% offset on your portfolio, so if you're putting 20% down as you add a property, your income actually goes up.
The key to long term success is knowing the right lenders to use and when. If you'd like to discuss your options give me a call. I'd be happy to review your portfolio and help you build a long term strategy.
