Cash flow first. Then the property.
A rental should carry itself. Before we look at the mortgage, we look at whether the numbers work, because a lender will, and because you will be living with them for years.
- You want to buy your first rental property.
- You own one and want to know how the next one gets financed.
- You are thinking of using your home’s equity as the down payment.
- You want to keep a home you are moving out of and rent it.
Run the payment
The mortgage payment at 20% down. The rental cash-flow tool follows after launch.
Open the calculator- Down payment: at least 20% for a non-owner-occupied rental. Mortgage insurance is not available.
- Rental income: most lenders count 50% to 80% of it, or use a rental offset, and they want a lease or a market rent appraisal.
- Your own income and debts, because the rental rarely qualifies on its own.
- Number of units and whether you will live in one. Owner-occupied two to four unit buildings can qualify with less down.
- How many rentals you already own. Some lenders cap the count.
- We run the cash flow with real Calgary or Edmonton taxes, insurance and vacancy before we run the qualification.
- We choose the lender by how they treat rental income, which changes what you qualify for by tens of thousands.
- We plan the portfolio: which lender for property one so property two is still possible.
- We explain the equity route honestly, including the risk of borrowing the down payment.
A $380,000 duplex unit rents for $2,100. One lender adds 50% of the rent to income; another uses an 80% rental offset against the payment. For a buyer earning $95,000 with a $200,000 balance on their own home, the second lender approves about $60,000 more.
Taxes, insurance, condo fees and a 4% vacancy allowance leave the unit roughly cash-flow neutral at a 4.6% rate with 20% down. We show that before the offer, not after.
Illustrative only. Lender rental-income policies differ and change. Constants verified 2026-09-16.
Have these ready and the first meeting does the work of three.
Send them through our secure application, never by regular email.
- Income documents, as for a purchase
- Current mortgage statements and property tax bills for properties you own
- Leases for existing rentals
- For the new property: the listing, the offer and the lease or a market rent letter
- Down payment statements, ninety days
How much down payment do I need for a rental?
At least 20% if you will not live there. If you buy a two to four unit property and live in one unit, insured financing with less down can be possible.
Can I use my home equity for the down payment?
Yes, through a refinance or a HELOC on your home. It works, and it means the whole purchase is borrowed. We show the combined payment so the decision is clear.
Will the rent count as income?
Partly. Lenders use a percentage of it or offset it against the new payment. The method makes a big difference, and choosing the lender for it is a large part of our job.
Talk to us about your situation.
A first conversation costs nothing. Bring the questions; we bring the numbers.
Cristina
Newcomers on work permits or PR, first-time buyers, renewals and refinances.
English · Español
Juan
First-time buyers, self-employed income, and files a bank has already declined.
English · Español
Sheryl
First-time buyers, self-employed professionals, refinancing and home equity.
English
First-time buyers
Down payment, programs, pre-approval and what happens after your offer is accepted.
See the stepsNew to Canada
Work permit, PR or citizen: which lenders accept your status and your income history.
See the stepsSelf-employed
Your tax return is not your income. We show lenders the business behind it.
See the steps