Broker Resources

Friends Celebrating

Approved! Mortgage purchase with rental income

Real deal breakdown on an approval we processed for three friends seeking to benefit from rental income on their first property.

Approved! The purchase of a rental property in Sault Ste. Marie under a holding company owned by three friends.


  • Rental property
  • 30-year amortization
  • Approved at 75% LTV
  • 1-year closed


Financial growth is the goal for three childhood friends investing in their future with the purchase of a Sault Ste. Marie investment property under their holding company. Rental income will cover the property costs and expenses.

Confirmable and sustainable income, excellent net worth, prime credit, and a marketable property made this a quick approval for us at 75% LTV.

Owning a rental property can be stressful to maintain – we understand that – which is why FREE Home System Warranty for the full 1-year mortgage term will help these clients be worry-free!


We use the rental offset income to calculate debt service ratios. What does that mean? It’s a big advantage for clients since they can use a percentage of their rental income to offset rental expenses, which helps clients qualify. Many lenders add-back rental income to the calculation which results in higher debt service ratios.

Rental Income Calculation

Subject Property, Owner-Occupied

    • 100% rental offset based on leases for legal units
    • 80% if legality is not confirmed

Non-subject Property and Subject Rental Properties

      • 80% rental offset based on leases
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