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Strategic Financing for Investment Properties

Learn how to wisely finance investment properties to grow your portfolio!

Navigating Ottawa's Real Estate Market: A Comprehensive Financing Guide

Investing in real estate in Ottawa offers lucrative opportunities, but understanding the intricacies of financing these properties is essential for maximizing your investment potential.

Empowering Your Investment Journey

This comprehensive guide aims to provide you with the knowledge and tools necessary to navigate the Ottawa real estate market successfully. Whether you’re a seasoned investor or exploring new opportunities, understanding the nuances of financing is essential for realizing your investment goals.

Different Types of Investment Properties


Single-Family Homes and Condominiums

Lenders handle these properties differently within their residential mortgage programs, focusing on individual qualification criteria and application processes.


Multi-Unit Residential Rental Properties

Multi-unit residential rental properties, often classified by lending institutions as buildings with 7 or more residential units, represent a unique segment of the real estate market. These properties may also include a small commercial component, adding further complexity to their financing.

Key Considerations in Financing

Navigating the financing landscape for Ottawa investment properties involves several critical considerations:


Qualifying Criteria

Lenders assess the property’s ability to service the mortgage debt, often requiring a minimum Debt Service Coverage (DSC) ratio of 1.3.


If your Net Operating Income (NOI) = $100,000 and the annual payment = $75,000 

$100k ÷ $75K = 1.33

So the DSC ratio would be 1.33


Application Process

Expect thorough analysis of the property’s performance, including rent rolls, operating statements, and historical data.


Due Diligence

Third-party reports such as property appraisals and Environmental Risk Assessments (ESA) may be necessary to complete due diligence.


Costs, Rates, and Terms

Understand all associated fees and terms, including the formula for establishing interest rates and available mortgage privileges.


CMHC Insurance Coverage

Explore the benefits of CMHC insurance, which can enable borrowing up to 85% of the property value and potentially qualify for lower interest rates.

Selecting the Right Representative

Choosing a lending representative with expertise in all types of residential financing is crucial for streamlining the approval process. With extensive experience in Ottawa mortgage lending since 1979, the Martin Elder Group specializes in financing options and are committed to providing the expertise and quality service you deserve!

Get In Touch

Please fill out the following to get in touch with Martin Elder Real Estate Group. Once we receive your message, we’ll follow up with you right away.


    Main: 613.296.8065

    Weekend: 613.279.3543

    Brokerage office: 613.801.8311


    Main Office

    343 Preston St 11th Floor
    Preston Square
    Ottawa, ON
    K1S 1N4