Investment property for 5% down?

[keith1]

Is it possible to get an investment property for 5% down plus CMHC fees or is that exclusive to primary residences?

 

[westboundventures]

QUOTE (keith1 @ Oct 12 2009, 02:22 PM) Is it possible to get an investment property for 5% down plus CMHC fees or is that exclusive to primary residences?

Yes, I recently purchased an investment property with 5% down and CMHC insurance fees. A good mortgage broker who works with investors should be able to let you know whether you can qualify for this. (depending on your financial situation and credit history)

 

[Noel]

QUOTE (keith1 @ Oct 12 2009, 02:22 PM) Is it possible to get an investment property for 5% down plus CMHC fees or is that exclusive to primary residences?

Yes, you can buy income properties using CMHC mortgage insurance.
It`ll be dependent on a number of factors including your debt servicing ratios, beacon score and more.

 

[RobMacdonald]

Hi Keith,

CMHC offers financing on single units and duplexes for 5% down. If you buy a triplex or fourplex, the minimum is 10% down. With the insurance premium, you will have slightly negative equity in the property, but if this makes sense in your overall strategy, it can be an option for you.

 

[GarthChapman]

Keith, where the numbers work this can be an excellent strategy to grow your portfolio with very minimal capital required. I have a number of clients doing this now - but again - the numbers have to support using this strategy.

Hope that helps,