🏗️ Investment & Rental Property Focus – Fall 2025

Best Mortgage Rates for Investment Properties in 2025

Real estate investing in Canada remains strong in 2025, even as borrowing costs stabilize after several years of rate volatility. Investors are now focusing on cash flow stability and long-term appreciation, rather than quick flips.

Investment property mortgage rates in fall 2025 typically range between 5.3%–6.2% for fixed terms, depending on down payment size and property type.

• Big banks like RBC, TD, and Scotiabank offer standard rental financing with stricter income requirements.

• Alternative lenders such as RFA, Equitable Bank, and First National are providing more flexible approvals for self-employed or high-ratio investors.
  
  How to Finance a Rental Property in Canada (Updated for 2025)

  Financing an income property in 2025 requires a strategic approach as lenders tighten qualification criteria.

  Here’s what investors need to prepare:

  1. Higher Down Payment: Minimum 20% for non-owner-occupied properties.

  2. Stronger Credit & Income Proof: Most lenders require 680+ credit and verifiable rental income.

  3. Debt Service Ratios: Ensure your GDS and TDS ratios meet lender thresholds, typically under 44%.

  4. Rental Offset Rules: Some lenders use up to 80% of expected rental income to qualify.

  For multi-unit properties or mixed-use buildings, consider commercial mortgage programs or CMHC MLI Select, which allow extended amortizations and better cash flow potential.