Financing a Pure Investment Property: What's Different

A pure investment property — one you won't live in at all, even part-time — cannot be CMHC-insured in Canada. That means a minimum 20% down payment, financed conventionally, regardless of how strong your income or credit is.

This is a meaningful difference from an owner-occupied multi-unit property (say, a duplex where you live in one unit and rent the other), which may still qualify for insured, lower-down-payment financing. The distinction is genuinely about occupancy, not just property type.

Lenders typically count a portion of the expected rental income — commonly around 85% — toward your qualifying income for a pure investment property purchase, to account for vacancy and expenses. Try this directly in our affordability calculator by switching to 'Rental / investment' property use.

TDS (Total Debt Service) limits are also tighter for rental/investment properties than for a principal residence under conventional financing — generally 44% rather than 50% — reflecting the additional risk lenders see in a property that depends on a tenant's rent to help cover the payment.