Investment Property

A real estate portfolio is a significant financial goal

Ready to take the first step toward financial Inc freedom? At Simply Financial Inc, we understand that building a real estate portfolio is a significant financial goal. Our mission is to turn this goal into a reality.

Investment property loans serve the primary purpose of facilitating real estate investments beyond personal homeownership. These loans empower investors to acquire properties with the intent of generating rental income or achieving long-term capital appreciation. The goal is to make the property an income-producing asset or a vehicle for building wealth through property value appreciation.

Higher Interest Rates

Investment property loans typically come with slightly higher interest rates compared to traditional home mortgages. This reflects the increased risk associated with investment properties.
The higher interest rates help compensate for this added risk.

Larger Down Payments

Lenders require larger down payments for investment property loans. While primary residence loans may allow down payments as low as 3% to 5%, investors typically need to put down 20% or more of the property’s purchase price. This higher down payment requirement mitigates risk for lenders.

Income Considerations

Lenders closely evaluate the property’s potential rental income when approving investment property loans. They want to ensure that the property can generate sufficient rental income to cover the mortgage payments, property taxes, insurance, and ongoing maintenance costs. Borrowers must demonstrate their financial stability and creditworthiness to qualify for these loans.

Property Type Variation

Investment property loans can be used to finance various property types, including single-family homes, multi-unit apartment buildings, retail spaces, office buildings, or vacation rentals.
The specific terms and approval criteria may vary depending 
on the property type and the investor’s intended use. Different property types may offer varying income potential and risk profiles.

Risks and Rewards

Investment property loans offer investors the potential for income generation and wealth building through real estate. However, they come with financial risks, including property vacancy, ongoing maintenance costs, and market fluctuations.
Real estate investors must conduct thorough due diligence before making a purchase, considering factors such as property location, condition, and the prevailing market trends. Additionally, they should have a well-thought-out investment strategy that aligns with their financial goals and risk tolerance.

Ready to Start Your Journey in Real Estate Investment?

Contact Simply Financial Inc today to explore the possibilities of investment property loans. We’re dedicated to simplifying your path to building your real estate portfolio with professionalism, helping you turn your investment aspirations into reality.