Rental & investment
Rental property mortgages in Ontario
Banks, credit unions and monoline lenders finance rental properties in Ontario. The rules differ from buying a home to live in: a larger down payment, and rules for how much of the rent counts.
Mortgage default insurance is for homes you or a close relative will live in, so a rental you won't occupy generally needs at least 20% down. Lenders count part of the rental income when you qualify. For an insured owner-occupied home, up to 100% of the gross rent from a 2-unit property, or up to 50% from 3–4 units, can count (CMHC); uninsured lenders use their own methods.
Equity in your own home, through a HELOC or refinance, is a common source for the down payment. That equity is borrowed money, and its payment counts as a debt too.
What kind of rental you are financing
The down payment, and how much of the rent counts, depend on which of these applies to you.
You're buying a first rental property
For a condo or house you will rent out, the down payment and qualifying rules differ from a home you live in. We explain both, and the costs, before you make an offer.
You'll live in a home with a rental unit
Living in one unit and renting the other can change both the down payment and how much of the rent the lender counts. We work out the down payment and the rent that counts before you make an offer.
You're growing a rental portfolio
If you already own rentals, lenders look at your other properties too. Matching you with lenders whose rental policies fit is where a broker helps most.
The kinds of lender we try, in order
We start with the first kind of lender for every client, and move down the ladder only when the kind above can't help yet.
Banks, credit unions, trust companies and monoline lenders
A bank, credit union, trust company or monoline lender usually costs you least. We start here for every client, and compare more than one lender's offer.
How we compare lenders →Alternative ("B") lenders
We look at alternative lenders when your income, credit or property doesn't fit a bank's rules today. Alternative lenders charge higher rates and fees, often for a shorter term, so we plan your move back to a bank.
When an alternative lender fits →Private money, as a short bridge
We look at a private bridge only when no bank or alternative lender can help yet and there's a clear exit. We refer private requests to Stonefield Capital, our private-lending brand.
When private makes sense →
How a rental mortgage goes from the down payment to closing
Plan the down payment
A rental you won't live in usually needs 20% or more down. We look at where your down payment comes from.
Work out the rent that counts
Each lender has its own method. We choose the lender whose method suits your numbers.
Compare lenders
We compare banks, credit unions and monoline lenders first, and alternative lenders when your portfolio or income doesn't fit bank rules.
Close
Your real-estate lawyer closes the purchase and registers the mortgage.
What documents and details do I need to have ready?
You need no documents for the first call. Once we know which documents your lender needs, you share them through a secure application and never by e-mail.
- Income documents
- Leases or a rent appraisal for the property
- Mortgage statements and property tax bills for any properties you own
- Where the down payment comes from
Questions about rental property mortgages
How much down payment do I need for a rental?
Generally at least 20% if you won't live in the property, because default insurance is for owner-occupied homes (and homes for a close relative). Check the down payment rules.
Does rental income help me qualify?
Yes. For an insured home you live in, up to 100% of the gross rent from a 2-unit property, or up to 50% from 3–4 units, can count (CMHC, rental income rules, May 2024); uninsured lenders use their own methods.
Can I use my home's equity for the down payment?
Often, through a HELOC or refinance. Equity you borrow is still borrowed money, so lenders count its payment. Whether the interest is tax-deductible is a question for your accountant.
Rules described on this page were checked on 2026-10-23. Every mortgage is subject to lender approval. This page is general information, not financial advice.
More questions about rental property mortgages
No cost to talk
Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.