Understanding Investment Property Mortgages in 2026
Investment property mortgages differ significantly from primary residence financing. As we enter 2026, understanding these differences is crucial for building a successful real estate portfolio.
Down Payment Requirements
Rental Income Qualification
Add-Back Method:
- Add 50% of gross rental income to your income
Offset Method:
- Rental income offsets mortgage payment
Tax Considerations
- Mortgage interest deduction - Interest is fully deductible
- Property expenses - Maintenance, insurance, property management
- CCA depreciation - Claim building depreciation
- Capital gains - 50% inclusion rate on disposition
Building Your Portfolio
Strategy 1: BRRRR Method
- Buy, Renovate, Rent, Refinance, Repeat
Strategy 2: House Hacking
- Live in one unit of multi-family
Frequently Asked Questions
Can I use gifted funds for an investment property down payment?
Generally no. Most lenders require investment property down payments to be from your own resources.
How many investment properties can I finance?
Most lenders cap at 4-5 financed properties. Some specialty lenders go higher.
Contact us to finance your investment property.
Start Building Your Portfolio
Get pre-approved for your investment property mortgage today
