Calculate your buying power with rental income qualification. Supports add-back and offset methods with flexible GDS/TDS ratios for A, B, and alternative lenders.
Up to 5 Rental Properties
Full portfolio analysis
Rental Income Methods
Add-back or Offset at 0-100%
3-Tier Ratio System
Standard, Extended, Maximum
New Purchase
Buying a new property
Switch / Transfer
No down payment required
Lender transfers don't require a down payment. LTV is calculated from your existing mortgage balance and current property value.
30-year requires LTV ≤ 80%
Note: Only 50% of condo fees are used for mortgage qualification purposes.
Add % to Income
Add-back Method
A percentage of gross rental income is added directly to your qualifying income. Rental property costs still count as debts.
Example: $2,000 rent × 80% = $1,600 added to income
Rent × % → Income
Rental Offset
Offset Method (More Favorable)
Rental income × % is subtracted directly from your housing costs in the TDS calculation, reducing your debt obligations.
Example: $2,000 rent × 80% = $1,600 offset reduces your debt load
Rent × % → Reduces Debt
No rental properties added. Click "Add Property" to include rental income.
Standard Ratios (39/44)
A-lenders, up to 95% LTV insured
Extended Ratios (45/50)
B-lenders, self-employed, max 80% LTV
Maximum Ratios (Custom)
Alternative/private lenders
Maximum Qualifying Mortgage
$500,000
Based on rental income method
Monthly Payment
$2,500
Current LTV
80%
Stress Test Rate
7.00%
LTV exceeds limit for selected ratio tier
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Our Investment Property Mortgage Calculator helps Canadian real estate investors determine their maximum borrowing power when purchasing rental properties. Unlike traditional mortgage calculators, this tool accounts for rental income qualification using both the add-back and offset methods that lenders use.
The add-back method adds a percentage of your gross rental income directly to your qualifying income. Most A-lenders use 50% for insured mortgages, while B-lenders and uninsured mortgages may allow 80-100%. This method is ideal when you have strong rental income relative to your employment income.
The offset method uses rental income to reduce (offset) the carrying costs of your rental properties before calculating debt service ratios. This approach works best when your rental properties have positive cash flow and can fully or partially cover their own expenses.
Canadian lenders use Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine how much you can borrow. Our calculator supports three tiers:
This calculator supports two transaction types. For a new purchase, you'll specify the purchase price and down payment to calculate your mortgage amount and LTV. For a lender switch or transfer, no new down payment is required — your LTV is calculated from your existing mortgage balance divided by the current property value.
All investment property mortgages in Canada must pass the federal stress test. This means you must qualify at the higher of 5.25% or your contract rate plus 2%. Our calculator automatically applies this stress test to your qualification, showing you the qualifying rate used alongside your contract rate.
To maximize your investment property buying power, ensure your existing rental properties have strong cash flow. Document your rental income with signed leases, and consider using the rental income method (add-back vs offset) that best suits your portfolio. Our mortgage specialists can help you determine the optimal approach.
Investment properties require a minimum 20% down payment in Canada. CMHC insurance is not available for non-owner-occupied rental properties. Some lenders require 25% or more for multi-unit properties or if you already own multiple rentals.
Most lenders use one of two methods: Rental Offset (50-80% of rental income offsets the rental property's expenses) or Add-Back (a percentage of rental income is added to your qualifying income). The method used can significantly affect how much you can borrow.
For purchases, most lenders accept an appraiser's market rent estimate or comparable rental listings. For existing rentals, they'll use your actual lease agreements or T776 rental income tax forms. The qualifying amount is typically 50-80% of gross rent to account for vacancies and expenses.
The maximum loan-to-value for refinancing an investment property is 80% with most A-lenders. Some B-lenders may go higher (up to 85%) but at premium rates. This 80% LTV cap means you must maintain at least 20% equity in the property at all times.
Yes, typically by 0.10-0.25% compared to owner-occupied rates. Lenders consider rental properties slightly higher risk. However, the rate premium is modest, and the rental income and tax benefits usually far outweigh the extra interest cost.
Our investment property mortgage specialists can help you leverage rental income to qualify for more.
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