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Buying a rental is nothing like buying a home. The down payment rules are stricter, lenders count your rental income on their terms, and one wrong lender choice can kill the deal. I finance investment properties across the GTA and surrounding areas in Ontario every week, and I know exactly which lenders say yes.
Here is the number that surprises most first-time investors: for a non-owner-occupied rental, expect to put 20 percent down. Mortgage insurance does not cover rentals the way it covers a home you live in, so lenders want real skin in the game. On a $600,000 duplex, that is $120,000 before closing costs. Plan for it early, because this is where most investor files live or die.
Lenders do not count your full rent as income. Most add back only part of it, commonly 50 to 80 percent, or they offset it against the property’s costs. A signed lease helps. A history of rent deposits helps more. Every lender has its own formula, which is why the same application can get a yes from one lender and a no from the next. Part of my job is matching your property to the lender whose math works in your favour.
Strong credit, provable income, and 20 percent down? You belong with a prime lender at the best rates. Shorter history, bruised credit, or an unusual property? Alternative lenders exist for exactly that, at a modest rate premium. Need to close fast, or your file does not fit any box? Private money works as a bridge while we position you for a refinance into better lending. Through my network of lenders, I can place all three, and I will tell you straight which lane fits your deal.
Yes, but only part of it. Lenders typically add back 50 to 80 percent of the gross rent, and some use a rental offset instead. I will run your numbers through each lender’s formula before you make an offer, so there are no surprises.
Only if you will live in it. An owner-occupied home with a rental suite can qualify for a low down payment. A pure rental you do not live in needs 20 percent. If someone tells you otherwise, get it in writing.
Sometimes. Prime lenders may add a small premium for rentals, and alternative or private rates run higher. The spread is the cost of the opportunity, and we weigh it against the property’s cash flow before you commit.
Bring me the property and your numbers. I will map your approval path across prime, alternative, and private lenders, in plain English.
Prefer to talk? Call +1 905-781-1773 or email mortgages@tonybrar.ca.
“True professional, extensive experience, responsive. A pleasure to work with.” — Ranjit Mander
The right mortgage isn’t about chasing rates. It’s about finding the solution that gives you peace of mind. That’s what I deliver.
© 2026 Tony Brar Mortgages. All rights reserved. Dominion Lending Centres Yournesta Financial · FSRA# 13371
Tony Brar – Mortgage Agent Level 2
License #13371
DLC Yournesta Financial
Helping homeowners, buyers, and business owners secure mortgage solutions across the GTA and surrounding areas in Ontario through banks, alternative lenders, and private lending options.
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