Great! Thank you for sharing what you are looking for! Let's quickly summarize that!
You're looking for a single-family home purchase which you will use as a rental property. Here's all you need to know to get started on your mortgage based on your situation:
Purchasing a rental property can be a great long-term investment strategy. The rental income generated can sometimes offset the majority, if not all of your annual mortgage/property costs. It is important to choose a desirable location that is close to shopping and transit. You want your rental to be highly desirable by all demographics. Mortgage Interest costs are tax deductible, as are all costs affiliated with maintaining and operating the property. Rental/investment properties are best suited for a long-term strategy.
Minimum down payment is 20%. You can get a better rate if the rental property has 2-4 units (duplex, triplex, fourplex, etc.) because it will be deemed insurable by CMHC.
Your FICO score, which is different from your credit score, is a number used by Canadian mortgage lenders to determine your creditworthiness based on your financial history. Preferably, a FICO score of 680 and above is what you should aim at to ensure you get approved with the best rates on the market.
Click here to find out your FICO score for free now!
If you are salaried or work part-time, it is necessary that you have guaranteed hours and a proven steady income. Further, you will have to ensure you are not on employment probation. If you happen to be on probation at the time of application, you can try scheduling your closing date after your probationary period. Self-employed professionals will require a 2-year income history which will be averaged. If there is a current rental lease in place on the subject property, that exact amount can be used as income on your application. If the rental space is vacant, a market rents letter by an appraiser can be used for income on an application.
You should get pre-qualified before starting your house hunt. Figure out your budget and calculate how much you could afford and get approved for before looking for a new home.