Richards Mortgage Group Articles

This topic is for aspiring Real Estate Investors who dream of owning more than just their own home: who want to build financial independence based on revenue properties; who want to know how to become a real estate investor in Canada. To get started on the 'property ladder' one needs to understand mortgage financing. Spoiler alert: there is a particular mortgage tool that will make climbing the property ladder much easier - you want to get this type of mortgage when you purchase your first home or early on in your investing journey.

Looking to kick-start your BRRRR real estate investment strategy in Canada? Look no further than owner-occupied properties!

I frequently receive calls from individuals seeking advice on how to prepare to qualify for a mortgage once they arrive in Canada. Recently, I provided some guidance to a couple via email, and I thought it would be valuable to share it as a blog post. So, without further ado, here are a few pointers for you.

Last updated May 2, 2024 Effective January 1, 2023, the Canadian Government enacted a temporary two-year ban (2023-2024) on non-Canadian purchase of residential real estate, which was extended a further two-years (2025-2026) in the 2024 federal budget to at least the end of 2026. It's called the “Prohibition on the Purchase of Residential Property by Non-Canadians Act”, and the legislation link is here. Please visit the link to see if the Act applies to you.

Normally in purchase financing, mortgage lenders have a rule that their loan be based upon 1) the appraised value of the property, or 2) the purchase price, whichever is less. But what if the property has appreciated considerably since the purchase price was agreed to years ago, as may be the case in pre-sale condominium and pre-construction purchase agreements and even rent-to-own transactions? The question then becomes, can I get a pre-sale condo mortgage based on the higher market value? Can I use price appreciation as my mortgage down payment?

Getting approved for a mortgage can be very stressful on first time home buyers... this article explains what is really happening!