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It seems financing for rental properties has become a daunting task for some, because of this fact, the news that Street Capital Financial (owned by TD Canada Trust) is now offering a rental program is music to some individuals ears. The good news about their rental program is it comes with no rate surcharges and no insurance premiums up to 75% LTV (Loan to value). This is a unique feature, as many other mortgage lenders do not offer these aspects on rental deals. Here are some of the following details on the new rental program they provide:

• Term is 5 year fixed
• Maximum Loan to Value is 80% (must be putting 20% down payment on purchased rental property)
• Maximum Debt Ratio (TDS) cannot exceed 40%
• Property types have to be in a marketable urban area, condos are also included in this program
• Properties can only have a maximum of 1-4 units
• Maximum amortization is up to 30 years (with no rate surcharge and has to be at 75% loan to value or less)
• Down payment must come from own sources, cannot be a gift. Down payment can also come from a secured line of credit
• In regards to proof of rent, they will accept market rent letters if subject property has no rental history. Otherwise, you will need to provide documentation through T1 Generals, lease agreements, or bank statements confirming 12 months of rental income
• In regards to adding rental income to strengthen the deal, you can only use gross rental income up to 50%
• There are no insurance premiums charged at 75% loan to value and under. Between 75% loan to value and 80% loan to value the premium charged is 2.50%

Contact Robert Clancy today so see if you are eligible for a rental property mortgage!