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Investment property mortgage calculator for Canadian real estate investors
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Investment Property Mortgage Calculator

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.

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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

Transaction Type

$
$
$
%

Primary Residence

$
$
$
$

Note: Only 50% of condo fees are used for mortgage qualification purposes.

Rental Income Treatment

%

Rental Properties 0/5

No rental properties added. Click "Add Property" to include rental income.

Other Monthly Debts

$
$
$

Qualifying Ratios

Your Qualification Results

Maximum Qualifying Mortgage

$500,000

Based on rental income method

Monthly Payment

$2,500

Current LTV

80%

Stress Test Rate

7.00%

GDS Ratio 32% / 39%
TDS Ratio 38% / 44%

Qualification Breakdown

Base Monthly Income: $0
Rental Adjustment: +$0
Effective Qualifying Income: $0
Other Monthly Debts: $0
Rental Property Costs: $0
Effective Debt Load: $0

Rental Income Impact

Total Gross Rent: $0/mo
Total Rental Costs: $0/mo
Net Cashflow: $0/mo
Without Rental Treatment: $0
With Rental Treatment: $0
Buying Power Increase: +$0
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How the Investment Property Mortgage Calculator Works

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.

Understanding Rental Income Qualification Methods

Add-back Method

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.

Offset Method

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.

GDS/TDS Ratio Tiers Explained

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:

  • A
    Standard Ratios (39/44) — Used by major banks (A-lenders) for prime borrowers. Supports up to 95% LTV with CMHC insurance.
  • B
    Extended Ratios (45/50) — Available from B-lenders, credit unions, and for self-employed borrowers. Maximum 80% LTV.
  • P
    Maximum Ratios (up to 65/65) — Alternative and private lenders may accept higher ratios but require larger down payments (20-35%) and charge premium rates.

New Purchase vs. Lender Switch

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.

The Stress Test for Investment Properties

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.

Pro Tip: Maximize Your Buying Power

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.

Frequently Asked Questions

What is the add-back method for rental income?
The add-back method adds a percentage of your gross rental income (typically 50-100%) directly to your qualifying income, increasing your borrowing power. Most lenders use 50% for insured mortgages and up to 80-100% for uninsured.
What is the rental income offset method?
The offset method uses rental income to reduce (offset) the carrying costs of your rental properties before calculating debt service ratios. This method is often preferred when rental properties have positive cash flow.
What GDS/TDS ratios do alternative lenders accept?
Alternative and private lenders may accept GDS ratios up to 65% and TDS ratios up to 65%, compared to standard A-lender limits of 39% GDS and 44% TDS. However, higher ratios typically require larger down payments (20-35%).
How many rental properties can I include in my qualification?
Most lenders will consider income from up to 4-5 rental properties when calculating your qualification. This calculator supports up to 5 rental properties plus your primary residence.
What LTV is available for investment properties?
Investment properties in Canada require a minimum 20% down payment (80% LTV) for A-lenders. B-lenders and alternative lenders may go up to 80% LTV but often prefer 65-75% LTV for better rates.
Do I need a down payment for a lender switch?
No, switching lenders (also called a transfer) does not require a new down payment. Your LTV is calculated based on your existing mortgage balance divided by the current property value.

Ready to Grow Your Portfolio?

Our investment property mortgage specialists can help you leverage rental income to qualify for more.

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