Approximately one in 20 Canadians owns a rental property ; among households with an annual income of over $100,000, rental-property ownership jumps to 10%. Investment property owners are motivated by a variety of factors, which may include:

• Building wealth: Real estate values tend to appreciate over time, so, for many homeowners, owning a secondary property is a solid long-term investment strategy;

• Diversifying income: In the shorter term, renting out that secondary property will add an additional income stream each month;

• Boosting affordability: For some homeowners, having an income suite in their primary residence allows them to afford a larger mortgage and “more” home, especially in competitive real estate markets.

Are you ready for this “home” business?

For the reasons above, property investment may sound like an obvious opportunity. But, the reality is, while it has the potential to be highly rewarding, it’s not for everyone.

Here are three things to consider before taking the next step:

1. Time Commitment

Being a landlord isn’t about sitting back and collecting those rent checks! Owning an investment property is a job that entails weekly, seasonal, and emergency property maintenance (indoors and out!), accounting, tenant screening (credit check, background check) and more.

You’ll be using soft skills like negotiation, communication, and conflict resolution, as well as hard skills like math and reading; plus, if you want to save on labour costs, additional technical skills like basic carpentry, plumbing, electrical and landscaping are beneficial.

Being a landlord means working odd hours, too. If your tenant’s kitchen pipe bursts at 1 a.m. on a weeknight, you’re the one they’ll be calling.

2. Labour

Take your basic homeownership chores and multiply them if you own a rental unit. From raking leaves, to getting the trash curbside, shoveling the walkway, to fixing that broken porch light, it’s all on you to tackle. And within a reasonable timeframe, because you’ve got paying customers to keep happy, not to mention municipal bylaws and provincial residential tenancy regulations to follow.

Some investment property owners hire a property manager (or delegate these chores to a tenant in return for a rental discount), which can net you more free time, but a little less income.

3. Risk

Finally, consider that while real estate appreciation is a general economic trend, regional disparities mean increasing property values are NOT guaranteed, particularly in the short term.

Hot markets like the Greater Toronto and Greater Vancouver areas, Ottawa and Montreal have all seen steady housing value gains, while local markets within the Prairies and Newfoundland have been far less predictable. Besides regional real estate markets, other risk factors include the impact tenants may have on your property value, such as basic versus extreme wear and tear, or the potential for tenants to default on rent payments.

Although no one wants to focus on worst-case scenarios, thinking out all the “what-ifs” can help you decide if investment ownership is right for you. Check out landlord communities and support groups online, to read about the ins and outs of this profession.

Bottom line

If you’re looking to build for your retirement (or to create a part-time job during a semi-retirement), diversify your monthly income stream, or boost affordability for your first home, property investing might be right for you. If so, 8Twelve Mortgage’s team of mortgage brokers can help you compare the different mortgage products out there for Canadians interested in property investing, including:

• The best mortgages for secondary homes,

• Renovation financing and purchase plus improvements products to get your income suite or secondary property ready to rent;

• HELOC mortgage, reverse mortgage and mortgage renewal options that can help you fund a down payment on a second property.

Ready to unlock the door to investment ownership? Contact 8Twelve’s Mortgage Strategists today.

Homeownership is the biggest investment many Canadians will ever make in their lives. It is a landmark achievement and one that keeps delivering returns in the form of security, pride of ownership and appreciating value over time .

Most Canadian families own their own home – 63% of Canadian households in 2016, according to Statistics Canada – including many people who face additional challenges in their homeownership goals, such as:

1. Self-employed workers
   2. New Canadians
   3. People with bruised credit

Members of these three groups may find it harder to gain mortgage approval or to qualify for the mortgage amount they seek. Read on to learn why, and for tips on how to overcome these hurdles.

Rising interest rates are signs of a strong, growing economy, but they are rarely welcomed when your mortgage could be affected. In a time when about 30% of Canadians have variable rate mortgages and almost half of all Canadian mortgage-holders have a mortgage coming up for renewal in the next year, the volatility of interest rates can be unnerving at best.

Luckily, there are ways that you can feel more secure and comfortable in times of rising mortgage rates. Whether that is changing your mortgage structure or taking advantage of an early renewal, your mortgage broker is there to help protect you against rate volatility.

8Twelve Mortgage Corp. Announces Launch of their new brokerage business

Toronto, Canada, 4th September, 2018, 8Twelve Mortgage announces it has launched its new business operations and is open for business.

Getting a mortgage is often the largest financial commitment Ontarians make and many homebuyers find that there are several benefits to using a mortgage broker or mortgage agent. Mortgage brokers/agents provide options and information to guide consumers through the mortgage application process.

Consumers are experiencing problems getting approved by conventional banks: “20% more mortgages are being denied by big banks”, says the Financial Post in a February, 2018 article outlining the impact of new credit rules on consumer applications. While a published average mortgage approval rate (US) is 88.2%, our brokers have proven to regularly reach approval rates in the 95% range. Clearly 8Twelve Mortgage Brokers are seeing higher success rates, in part due to access to a variety of funding sources. Ontarians who use a mortgage brokerage to get a first mortgage or refinance do it faster and at a better rate. In addition, customers found the mortgage process less stress with the help of a broker, while getting benefits of comparative shopping, and higher levels of satisfaction.

What differentiates 8Twelve is its three core values it has built its business on, which are customer-first, integrity and responsiveness. We spend time with our customer understanding their particular situation and needs before we even start the search for the best mortgage option. We do what we say and say what we do – we believe in transparency and survive on customer referrals, which are earned through our honesty and skills. We are flexible in how we conduct business: we’ll call, fax, email or text, and we’ll come to your home or meet you in our offices, at almost any hour to suit your needs.

8Twelve specializes in: first home buyers, mortgage renewals, renovation financing, mortgages for new Canadians or those with poor credit, CHIP reverse mortgages, access to equity and mortgages for investment property or second homes.

8Twelve Mortgage is a new and exciting company founded by a team of expert mortgage specialist with decades of experience. Co-founder Gary Fooks says “we are passionate about helping people achieve their goals of purchasing their biggest asset, renovating, constructing or adding to their investment portfolio. One of the most important aspects of our service is to ensure that our clients have a thorough understanding of their situation and what will work best for them now and in the future. Our high level of commitment, attention to detail, access to the latest and best market information, and availability, means that our clients have all the facts to make decisions that work for them.  Our goal is to provide a smart solution tailored to every client individually and to find the best product to ensure a smooth process. We welcome the opportunity to help you with your lending needs.”

Loyal customers recommend us:

·       “… he won’t give up until you’re happy and that is my personal outlook and attitude so I highly respect meeting and working with people with the same work ethic and principles,” says customer Jordan Levy.

·       “.. above and beyond to answer all our questions, was available at all hours, provided us with detailed updates and found us a very competitive rate. Gary even drove to our house, on his day off, to help us with signing papers, because my wife had dislocated her knee and was unable to travel. I could not be more pleased with the level of customer service and we will definitely be dealing with Gary for the remainder of our mortgage,” says customers Brien and Kelly, from Cambride ON.

·       “… very knowledgeable at what he does. He went above and beyond to help me get a great rate, I will definitely recommend him to anyone without blinking an eye. You make me feel comfortable during the whole process. I just want to say a big thank you for everything you have done for me and my family” says customer Pat Ejenavi

 “We started this company because we wanted to enhance the experience customers have when working with a mortgage agent”, says Co-founder and Principal Broker Akber Abbas. “We have developed a unique 8 step process that we work around the clock to make sure we deliver the best experience for our customers. Hence the name 8Twelve!”

Fully licensed by the Financial Services Commission of Ontario (FSCO 13072) 8Twelve mortgage professionals have met specific education, experience and suitability requirements.

8Twelve Mortgage Corp. is a premier full-service mortgage brokerage whose brokers have experience servicing Ontario-wide communities for decades. The firm helps customers get the best mortgage they possibly can.

Is it the cheapest? The shortest? The longest? The one with the most payout options? It depends on what your needs are.

Defining your needs

The process of identifying the ‘best’ mortgage begins with understanding and defining your needs and preferences. It also depends on your current situation and your future plans.

For example, if you want to pay it off fast, you may want a shorter term and/or some great payout options. Or you may want to get access to equity to pay for your kids schooling or a second home.

Lots of things go into identifying the best mortgage for you at any given time:

·       Rates

·       Term

·       Payout options

·       Funding for home renovation

·       Funding for school

·       Funding for a second home

·       Lowest payment

·       Fastest payment schedule

·       Additional features (e.g. cash return, revolving credit, etc.)

·       Access to equity (CHIP reverse mortgage)

For most of us, choosing the house we want to be our first home is the most important decision we have to make. It’s surprising to discover then, that the average time a person spends on viewing the property they decide to buy is under 30 minutes. We spend twice as long deliberating over what smart phone to get next as we do making the decision to buy our next homes, and three times as long when it comes to choosing a car. Obviously, these slightly sensationalist statistics don’t take into account the hours we might spend researching the housing market and viewing multiple properties before we make our decision. They do, however, ably demonstrate how emotive the issue is. A house is more than just bricks and mortar, it’s a home, and home is where the heart is. When it comes to making decisions about house-buying then, it seems emotion often rules.

Start with Pre-approval

We know this part can be intimidating, but it is very important to determine what first-time home buyer loan you can afford. The best part about this: sellers often take a pre-approved buyer more seriously than those who appear like they’re just shopping around.

Start a savings plan – and don’t touch it!

If you are looking to buy a home in the next few months then this is hopefully something that you have already done. As we have all been told, it’s never too early to start saving. You might be looking at a 20% deposit and think “I’ll never save that” but the actual amount you save is only a small piece of the overall picture. Yes you will need some cash to go towards a deposit but banks also look at your ability to set money aside each month and not touch it. They want to see that you can manage your money properly.