Rental add back

jesse-g

New Forum Member
Sep 3, 2018
5
0
1
33
#1
Does anyone have any advice for a new investor trying to understand the 50% rental ad back policy ? Are there any ways around this? With the way I understand it, it is going to quickly put and end to my portfolio growth

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kfort

Senior Forum Member
REIN Member
Sep 1, 2010
1,472
254
83
#2
Not all banks evaluate the same. Example: I’ve just switched 6 files to TD who evaluates by taking rent, subtracting 3% vacancy (Canada wide its this number currently), taxes, mortgage P&I. If that comes out a positive number they set it aside and act as if it doesn’t exist.

Their global limit is 10, 6 with TD itself.

All these evaluating factors are subject to change at any time. You’d be fairly well advised to consult a legitimately solid mortgage broker. And you may be surprised at how near or far you may find one!


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angelapeng

Inspired Forum Member
Registered
Aug 19, 2011
175
18
18
Vancouver
#4
Not all banks evaluate the same. Example: I’ve just switched 6 files to TD who evaluates by taking rent, subtracting 3% vacancy (Canada wide its this number currently), taxes, mortgage P&I. If that comes out a positive number they set it aside and act as if it doesn’t exist.

Their global limit is 10, 6 with TD itself.

All these evaluating factors are subject to change at any time. You’d be fairly well advised to consult a legitimately solid mortgage broker. And you may be surprised at how near or far you may find one!


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Are your files rental properties? A few years ago, TD only allows 4 rental properties with them, don't know that they can finance up to 6.