Once you identify a real estate investment property that offers promising cash flow, you will need to consider how to finance the acquisition.

Aligning your financing early on will help you make a swift and credible offer, which ultimately increases the probability for a successful transaction!

Below are a few examples of financing options for your next multi-family investment:

Conventional Financing: Offered by several banks and lending institutions. Up to a maximum 70% - 75% LTV, dependent on lender. Interest rates are typically 1.50% - 2.00% higher than Canadian bond rates, depending on length of term & lender.

CMHC Insured Financing: Typically, the most attractive form of financing specific to multi-family investments. Up to maximum 85% of purchase price or lending value as determined by CMHC, and generally lower interest rates relative to other forms of financing.

High Leverage Financing: Short term financing at higher interes trates, typically preferred by investors who want to minimize their equity requirement.

Partnership: A partnership structure can be set up for an acquisition, thereby splitting up capital requirements, rental revenue and end-profits in accordance to each partner’s proportionate contributions.