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Purchasing a Rental Property
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A minimum 20% down payment is required.
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Net worth and cash liquidity are important factors, ensuring you can cover expenses if the property is vacant for a period. Ask yourself: How would I manage if I didn’t have a tenant for three months?
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Strong credit is required for approval.
Do Rental Properties Have Higher Interest Rates?
Yes. Since 2016, when the stress test was introduced, lenders have separated rates based on:
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Down payment size
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Credit score
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Overall risk level
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Rental properties typically have higher rates because they carry more risk—you are not the occupant.
Landlord Considerations
Owning a rental can be a great investment—but also a challenge with the wrong tenant. It’s crucial to understand landlord and tenant regulations to manage your property effectively.
For more information, I would advise looking up the Alberta Landlord & Tenant Act.