Table of Contents
If you are new to the world of real estate investing, you may find yourself wondering how some investors can have portfolios of over one hundred investment properties, yet the banks are stopping you after four or five properties. Is there a trick to getting more mortgages and buying more properties?
The answer is yes, there is.
While certain lenders may impose a limit on the number of mortgages you can have in order for them to work with you, there are plenty of alternative options and strategies that you can utilize to increase the number of mortgages you are able to have.
So the real question is, how many mortgages can you have in Canada?
However, if you are ready to get started right now, stop asking how many mortgages you can have in Canada today, and give us a call. With a simple strategy call we can show you how to get unlimited mortgages for your portfolio through careful planning and wise investments.
Why Is There a Limit on The Number of Mortgages With The Banks?
One of the first questions you are likely going to ask yourself when looking into how many mortgages can you have in Canada when it comes to achieving multiple mortgages is, “Why are the lenders limiting me in the first place?” If you have gone in to buy an investment property to take out a new mortgage and been told that you have hit your cap, this question has almost certainly crossed your mind. After all, if you have the funds to support it, why are they telling you no?
The primary is for their own security. When the 2008 recession hit, a large number of investors and property owners defaulted on their mortgages or were forced to sell very quickly. This naturally lost the lenders a ton of money all at once, while also eliminating many of their projected profits they expected to earn in the form of interest payments over the upcoming years. So, many lenders decided that in order to protect themselves in the event of another major downturn they would impose limits on the number of mortgages a person can have in order for them to lend to them.
Another reason is to protect the investor. Each mortgage you take on does come with a level of risk, and while well-structured investments can make this risk more manageable, the lenders are also taking steps on their end to avoid the risk from piling up too high.
How Many Mortgages Can You Have in Canada on One Property?
Before you start looking at your entire portfolio, the question you should ask is how many mortgages can you have in Canada that are secured against a single property?
While there is no firm limit when you are asking how many mortgages can you have in Canada against a single property, there are a few benchmarks you will need to meet in order to get approved for additional mortgages on a single home. These benchmarks are tested in the form of a stress test, which will determine your ability to assume and repay debt on a property. During this process they will compare your debt-to-income ratios and credit worthiness to a benchmark interest rate.
Additional mortgages are also limited by the equity you have built in the property. Traditionally, lenders will approve you for a maximum of 80 per cent of the total equity you have built in the property, so as you take on more mortgage debt against the property, the amount of money you will qualify for and your ability to qualify for these mortgages will begin to decline.
Discover How To Apply For An Investment Property Mortgage With This Step By Step Guide
How Many Mortgages Can You Have in Canada in Total?
Now we have circled back to the big question…
How many mortgages can you have in Canada?
It may come as a surprise to you, but there is not a limit on the number of mortgages you can have in total – provided you are financially capable of managing them. That is right, once you know where to look to surpass the limits imposed by certain lenders, the primary limiting factor on your ability to have as many mortgages as you want, is you.
That means if you are capable of securing the funds to buy and maintain additional rental properties then you are free to expand your investment portfolio to your heart’s content.
So, how do you exceed the limits imposed by certain mortgage lenders?
LendCity – The Home of Unlimited Rental Properties
Sometimes, the question is not how many mortgages can you have in Canada, but instead how many rental properties can you finance – and we have a secret for you – the answer is limitless if you know what to do.
The solution we recommend to our readers to unlock the ability to buy unlimited rental properties is LendCity. When you apply for a mortgage, they take a look at your entire portfolio to determine exactly where you are at in order to get you approved with the best lender for you. That means not only bypassing mortgage limits but securing the best available mortgage rates for each of your investments.
How Commercial Lenders Can Allow You Bypass The Banks For Additional Financing
There is a point where each of the traditional residential mortgage lenders reach their limits and will not lend any further, but that does not mean you are out of options. In fact, that is where commercial lenders come into play.
Despite how it may sound, commercial lenders are capable of lending on more than just commercial properties. That means you are not locked into buying things such as retail properties and large multi-family properties. You are allowed to use them in order to buy single-family homes and small multi-family properties.
What makes commercial lenders different from traditional residential mortgage lenders is the fact that instead of focusing on you and your personal credit, the focus shifts towards the property and the profitability of the investment after factoring in expenses, vacancy rates and expected rent costs.
Through commercial lenders, you can stop asking yourself how many mortgages can you have in Canada, and instead focus on the business financials of your investments.
This is because once you enter the world of commercial financing, the answer to the question, “how many mortgages can you have in Canada?” is simply as many as your portfolio and investments support.
If You Are Ready to Continue Investing
If you are ready to invest without limits and grow your real estate portfolio, the team at LendCity is ready to help you. Each agent is dedicated to meeting you where you are at in your investment journey and setting you up with the best lending options to achieve long-lasting success.
Our team is ready to help you answer questions such as, ‘how many mortgages can you have in Canada?’ ‘how to get approved for multiple mortgages?’ and more.
If you are ready to begin, you can give the team a call at 519-960-0370 or check out LendCity.ca to apply online. Alternatively, you can book a free strategy call with our team today at the link below.