Get into the rental market with the Gateway Rental Mortgage™
If you have a client looking for an investment property mortgage, check out Bridgewater Bank’s Gateway Rental Mortgage. It’s an ideal solution for your clients who want to own rental properties but may not qualify for a traditional big-bank mortgage. It also gives you the opportunity to better serve your clients by offering them solutions they just can’t get elsewhere.
There are not a lot of mortgages designed specifically for purchasing or refinancing rental properties. The Gateway Rental Mortgage:
- Can be for owner-occupied or non-owner-occupied properties—something that not every lender allows.
- Allows for many types of property purchases, including single family homes, duplexes, fourplexes, townhouses, apartments and condos.
- Allows a client to finance up to four properties with Bridgewater Bank, to a maximum of $1.5 million (combined). There is no limit to the number of properties financed by other lenders.
- Offers flexibility in rates and fee structure from a near-prime, non-private lender.
- Allows for market rents or an 80% rental offset to be used against expenses, depending on the property.
What your client needs
Because Bridgewater Bank is an alternative lender, we offer investment property mortgage solutions that the big banks just can’t match. We still need to manage the risks, but we take a look at each person and their unique needs to determine the terms of the mortgage.
One major risk for your client will be the rental market. A vacant property doesn’t earn income, which is needed to make mortgage payments. We ask that:
- The property be located in a larger market to increase rental opportunities. That means in or near a major urban centre, or a small centre with a population of at least 50,000.
- Your client has a minimum personal net worth of $50,000.
- Your client provides a minimum 25% down payment, 10% of which must be from their own resources.
Non-traditional income…no problem
We know that not all clients will have income from a T4 slip and a letter from their employer. We specialize in helping people who are self-employed. With the proper income verification, your client can get into the investment property market.
Credit scores and debt ratios
To qualify for this mortgage product, your client should have:
- A beacon score of 600+ for the primary borrower or 550+ for co-borrowers.
- Discharge from bankruptcy for minimum 12 months with re-established credit.
- A maximum of 45% gross debt servicing (GDS) and 50% total debt servicing (TDS).
Take a look at the terms of this flexible mortgage solution.