Investment Property Mortgages in Toronto
Build a Toronto rental portfolio that lenders will keep financing.
Toronto rental properties are underwritten differently than owner-occupied homes — 20% minimum down, rental income offsets or add-backs, and stricter qualification once you own multiple doors. A broker structures each purchase so the next one is still approvable.
Who this is best for
- First-time real estate investors
- Owners adding a second or third rental
- Investors buying small multiplexes (duplex/triplex/fourplex)
- BRRRR-strategy investors needing refinance-friendly lenders
How a Toronto mortgage broker helps
- Models rental offset vs. add-back across lenders
- Identifies lenders comfortable with multiple rental doors
- Plans the portfolio so future purchases still qualify
- Sources refinance options to pull equity for the next purchase
What lenders typically look at
- Minimum 20% down on rental properties
- Rental income partially offset against the new payment
- Existing rental cash flow reviewed
- Stress test applies
- Some lenders cap total rental properties financed
Documents you'll likely need
- Personal income proof
- Existing rental leases and T776 statements
- Property tax bills on existing rentals
- Down payment confirmation
- Photo ID
A Toronto example
Second rental, east Toronto duplex
An owner with one existing rental adding a Toronto duplex is reviewed for 20% down, rental offset on both units, and lender-specific rules on number of doors financed.
Frequently asked questions
+What's the minimum down payment?
20% on a true rental property. Owner-occupied multiplexes (where you live in one unit) may qualify with less.
+How is rental income counted?
Lenders use either rental offset (subtracted from the new payment) or add-back (added to income). The method materially changes how much you qualify for.
+Can I refinance an existing rental?
Yes, typically to 80% LTV on a primary residence and 80% on rentals at many lenders.
+Is there a limit to how many rentals I can finance?
Each lender has its own cap. A broker spreads the portfolio across lenders so growth doesn't stall.
Related
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.