Rental financing
Mortgages for rental and investment properties
Lenders only count part of your rental income, and how they count it varies. With the same property and the same rent, one lender using rental offset and another using add-back can be $200,000 apart on what you qualify for. We know which lenders use which method.
No credit check, and no commitment.
A rental purchase, costed
Updated earlierWorked at $470,000, about the price of an average Edmonton home and a realistic price for an Edmonton rental.
- Minimum down payment
- $94,000
- 20% of the price. You can't put 5% down on a rental, because default insurance isn't available for one.Calculate mine
- Today's uninsured 5-year fixed
- 4.09%
- 4.14% APR · effective September 21, 2026 at 9:00 a.m. MT. A rental typically prices 0.10–0.30% above this.See every rate
- Refinance ceiling on a rental
- 80%
- On a $470,000 rental with $240,000 owing, that's $136,000 toward the next one.Run the numbers
Rates as of September 21, 2026 at 9:00 a.m. MT, subject to change without notice. O.A.C. Not an offer of credit, a rate hold or a pre-approval. Daniel De Sousa, Mortgage Associate, Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a RECA-licensed mortgage brokerage.
- 20% down, alwaysDefault insurance isn't available on a non-owner-occupied rental.
- Offset or add-backThe method a lender uses changes what you qualify for more than anything else.
- 4 to 5 propertiesWhere most A-lenders stop. Past that, you're looking at alternative or commercial lenders.
Which of these describes you?
Tick what applies to you. If it's 2 or more, get an investor quote.
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How rental offset and add-back work
Rental offset subtracts a percentage of the rent, commonly 50% to 80%, from the property’s own expenses before your ratios are calculated. The rent isn’t added to your income. It makes the property cost less on paper.
Rental add-back does the opposite. It adds a percentage of the rent to your income, and the property’s full costs stay in your expenses. With a strong personal income and 1 or 2 properties, add-back usually works better. As a portfolio grows, offset keeps the ratios workable, so investors with several properties usually end up with offset lenders.
On larger or commercial-style deals, neither applies. The test becomes debt coverage ratio: the property must bring in enough to cover its own debt, typically 1.10× to 1.25×. It’s a different product with different metrics, and for a property that pays for itself it’s usually the better fit.
How it works
How we handle an investor mortgage
We choose the lender before the rate, because on a rental the lender decides how much you can borrow.
Step 1: We look at your whole portfolio
About two minutes to start
What you own, what's financed, what the rents are and what you plan to buy next. That tells us whether an offset or add-back lender suits you.
Step 2: We price it at the lenders that fit the method
Same business day
You'll see 2 or 3 options side by side, with the qualifying income each one gives you. The gap between them is usually much larger than the gap in rate.
Step 3: We keep the next purchase in view
Ongoing
Where you stand against the 4 to 5 property limit, and what to do before you reach it.
Daniel De Sousa, Mortgage Associate, runs investor files personally.
The rules
Rental mortgage rules in Canada
Most of these are the same across Canada. Check the owner-occupied rules before you assume you need 20% down.
Minimum down payment
Calculate the minimum20% on a non-owner-occupied rental. Default insurance isn’t available, so you can’t put 5% down.
On $470,000, that's $94,000.
Stress test
Run the stress testApplies. You qualify at the greater of 5.25% or your rate plus 2 percentage points.
Rate
See today's ratesUsually higher than owner-occupied, typically by around 0.10–0.30%, depending on the lender and the loan-to-value.
Down payments above 20% often improve it.
Owner-occupied 2–4 unit
Different rules apply. You may be able to buy a 2–4 unit property you live in with as little as 5–10% down, and use the other units’ rent to qualify.
Check this before you assume 20%. Many investors overlook it.
Refinancing a rental
Run the break-evenUp to 80% of appraised value. This is the usual way investors grow a portfolio.
Debt service ratios, not equity, are almost always the limit.
How we calculate your qualifying rate. Under OSFI Guideline B-20, lenders qualify you at the higher of your contract rate plus 2 percentage points, or 5.25% (the minimum qualifying rate). Since November 21, 2024, OSFI no longer prescribes this test for eligible uninsured straight switches at renewal between federally regulated lenders, with no increase in the loan amount or remaining amortization. Lenders still assess creditworthiness. New purchases and refinances generally require qualification. Provincially regulated credit unions (including Alberta credit unions) aren’t bound by Guideline B-20 and set their own qualifying policies, which is one reason a broker can sometimes place a file a bank cannot. Rules current as of September 21, 2026. Source: OSFI Guideline B-20.
How rent is counted
Offset, add-back and debt coverage compared
Lenders don't publish which method they use. Matching the method to your situation is most of what we do on an investor file.
Rental offset
How it works. Subtracts 50–80% of the rent from the property's expenses.
Who it favours. Investors with several properties. It keeps debt service ratios manageable as the portfolio grows.
Rental add-back
How it works. Adds a percentage of the rent to your income.
Who it favours. Investors with one or two properties and strong personal income.
Debt coverage ratio
How it works. The property must cover its own debt, typically 1.10–1.25×.
Who it favours. Larger or commercial-style deals, and properties that stand on their own.
How many properties lenders will finance
Most A-lenders stop at 4 to 5 financed properties per borrower. After that, you move to alternative or commercial lending, which uses different metrics.
The mistake we see most often is finding that limit on the fifth purchase instead of planning for it on the third. If you plan to keep buying, choose the lender for property 2 with property 5 in mind.
Today's rates
Today's rates for rental properties
A rental is always uninsured, so these are uninsured rates. Expect a lender premium of roughly 0.10–0.30% on top for a non-owner-occupied property.
Effective September 21, 2026 at 9:00 a.m. MT
| Term | Rate | APR | Payment per $100,000 | Who it’s for | Get this rate |
|---|---|---|---|---|---|
| 5-year fixed | 4.09% | 4.14% | $531/mo | Uninsured | Hold this rate |
| 3-year fixed | 4.04% | 4.09% | $528/mo | Uninsured | Hold this rate |
| 5-year variablePrime − 0.25% | 4.20% | 4.25% | $537/mo | Uninsured | Hold this rate |
| 10-year fixed | 5.09% | 5.14% | $587/mo | Uninsured | Hold this rate |
Payment per $100,000 assumes a 25-year amortization, monthly payments and semi-annual compounding. We calculate it from the rate in the same row. Run it on your own number.
Rates shown are current as of September 21, 2026 at 9:00 a.m. MT and are subject to change without notice. Rates are available on approved credit (O.A.C.) only, are subject to the terms and conditions of the applicable lender, and may vary based on your credit history, income, down payment or equity, loan-to-value, property type and location, occupancy, amortization, and whether the mortgage is insured, insurable or uninsured.
Annual percentage rates (APR) shown assume a mortgage amount of $500,000, an amortization of 25 years with monthly payments, and include no lender or brokerage fees. Fixed rates are compounded semi-annually, not in advance, as required under section 6 of the federal Interest Act; variable rates are compounded monthly. Payment figures exclude property taxes, heating, condominium fees and default insurance premiums unless stated. Insured rates require mortgage default insurance and are available only on qualifying transactions.
Rates may contain errors or omissions and do not constitute an offer of credit, a rate hold or a pre-approval. Not all applicants will qualify. Contact Daniel De Sousa, Mortgage Associate, to confirm the rate available to you. Daniel De Sousa is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Published rates are owner-occupied reference rates. A rental premium is set by the lender for each file, and we quote it to you before you commit. We won’t show you an owner-occupied rate and then change it at the commitment stage.
Calculators
Run your own numbers
Free, with no email required. They use Canadian rules: semi-annual compounding, the down payment ladder and the stress test.
Affordability
What you can borrow once the rent is counted. Offset and add-back give different answers.
Down payment
The 20% rental minimum on your price, and what a larger down payment buys in rate.
Mortgage payment
The payment at every Canadian frequency, with the full amortization schedule.
Refinance break-even
Pulling equity out of one rental to fund the next: the ceiling and the break-even.
Rent vs buy
Compare buying with renting, using the same numbers.
Closing costs
Alberta's closing bill on an investment purchase, itemized.
Daniel De Sousa, Mortgage Associate with Indi Mortgage
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage · RECA licensed · 4990 92 Ave NW #105, Edmonton. Verify our licence on RECA ProCheck(opens in a new tab)
Client reviews posted here are unedited, and each one names who handled the file. We don’t pay for reviews or filter them.
Daniel De Sousa
Mortgage Associate, Indi Mortgage
Handles first rentals and portfolio files, small multi-unit and owner-occupied duplexes, refinancing a rental to fund the next down payment. Licensed by the Real Estate Council of Alberta and registered with Indi Mortgage, working out of the Edmonton office at 4990 92 Ave NW #105. Verify our licence on RECA ProCheck(opens in a new tab)
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a mortgage brokerage licensed by RECA. Verify our licence on RECA ProCheck(opens in a new tab)
Monday–Friday, 9:00 a.m.–5:00 p.m. Mountain Time. Closed Saturday and Sunday. Book 15 minutes if that’s easier.
Investment property mortgage questions
How many rental properties can I finance?
Most A-lenders stop at 4 to 5 financed properties per borrower. After that, you move to alternative or commercial lending, which uses different metrics (debt coverage ratio instead of TDS).
Can I use projected rent, or does it need a signed lease?
Either can work. With a signed lease, lenders use the rent on the lease. Without one, most will use a market rent appraisal, which is often higher than the rent you’d charge.
Is the rate higher on a rental?
Usually, by around 0.10–0.30% compared with an owner-occupied mortgage, depending on the lender and the loan-to-value. Down payments above 20% often improve it.
Can I refinance a rental to buy another?
Yes, up to 80% of its appraised value. It’s the usual way to grow a portfolio, and debt service ratios, not equity, are almost always the limit. On a $470,000 rental with $240,000 owing, that’s $136,000 available before ratios are considered.
What if I live in one unit and rent the others?
Then different rules apply. An owner-occupied 2–4 unit property can often be bought with as little as 5–10% down, and the other units’ rent can help you qualify. Many investors overlook this, so check it before you assume 20%.
Where does residential lending end and commercial begin?
At 5 units, as a rule of thumb. Buildings with 1 to 4 units get residential lending. Buildings with 5 or more are commercial, and lenders look at the property’s own debt coverage instead of your personal ratios. The down payment, rate, term structure and documents all change, so find out which side a building falls on before you write an offer.
Related mortgages
Find out how much you can borrow for your next rental
Fill in 3 fields. Daniel, a licensed mortgage associate, will tell you which lenders count more of your rent and how that changes what you qualify for.
- We match the counting method (offset, add-back or DCR) to your situation.
- You get the qualifying income each option credits you with, side by side.
- We'll tell you where the property limit is before you reach it.
Prefer to talk? (825) 797-5417 · Mon–Fri 9–5 MT
How we get paid. Daniel De Sousa arranges mortgages through Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage, not a lender. The brokerage and Daniel are compensated by the lender you choose when your mortgage funds (paid by the lender, not by you). Compensation varies by lender and product and doesn’t change the rate you’re quoted. A lender fee or brokerage fee is uncommon and happens mainly on alternative or private lending. If one applies to your file, we’ll disclose the exact amount in writing before you sign anything. We’ll tell you if any product we recommend pays us more than an alternative we considered. Before we start work on your file, you’ll receive a written service agreement setting out our services, our compensation and any fee that applies to you.
Get an investment property mortgage quote
It takes about two minutes and there's no credit check. You'll see the qualifying income under 2 different methods.
No credit check, and no commitment.