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Investment Property Mortgage

Investment Property Mortgage: Capital Mortgages Ottawa

Investment Property Mortgage

Important Information You Should Know about Investment Property Mortgages

At Capital Mortgages we strive to be your personal mortgage broker for life. By focusing on great solutions, compassionate relationships, and honest ethics, we are proud to experience an ever-increasing number of satisfied clientele. Let Capital Mortgage help you with your investment property mortgage.

What is an Investment Property Mortgage?

Investment property mortgages are loans that are made against the value of a single asset, such as a single or multiple unit property or entire development. This is similar to a traditional purchase or refinancing mortgage, but in this case, the lender takes a stake in the property as collateral.  If you have an investment property, you may be able to acquire an investment property mortgage.  Investment property mortgages are offered by mortgage brokers who focus on Investment Property Mortgages.  Most major financial institutions offer investment property mortgages, and these investments can provide additional returns, liquidity, and lower the cost of the mortgage. Here at Capital Mortgages we can help you get a mortgage for your future investment property.

Important Information You Should Know About Investment Property Mortgages

Please note: This mortgage rate is based on a one-year contract. The rate can change on or after the expiration of the one-year contract, if a rate at which you like the deal better becomes available.  Does this Mortgage Rate Pay Your Property Taxes?  To take advantage of the 30-year interest rate, your mortgage contract requires a sufficient down payment of at least 20% of the sales price. Alternatively, if you wish to pay your property taxes on an installment basis, you should contact your local tax collector.  Capital Mortgage has a reputation for helping people find mortgages that best suit their needs.

Why a Home Equity Line of Credit Isn’t a Good Idea

A HELOC (Home Equity Line of Credit) has many benefits. For instance, it can be used as a last resort, helping you keep the money that you were planning on paying into the bank and avoid paying the bank higher interest rates. As with any borrowing, it’s important that you do your homework and thoroughly investigate whether the HELOC will benefit your situation and will pay off. Some things to consider:  While a HELOC may give you some cash to deal with unexpected financial emergencies or unexpected expenses, the debt has to be paid back before you have any option to borrow from the money.  HELOCs usually have a high interest rate, which is charged every month. This can seriously hurt your finances if you let it go on for too long.

What Is a Home Equity Loan?

What is an equity loan? According to the National Association of Realtors, an equity loan is a loan funded by your house. If you borrowed against your house when you bought it, the bank lent you the money to buy the house and the house was valued at the time of purchase. Because the house was purchased with the loan, the bank gives you the money that you can use to buy other real estate (such as another home or investment property) or to cover operating expenses like property taxes, insurance, etc. If the house’s value has increased since the loan was issued (because, for example, your house is worth more or your family has grown) the bank will give you more money back, so the loan balance will go down.

Homeowners Insurance vs. Renters Insurance

Homeowners insurance typically includes damage to property from fire, natural disasters, theft, and so forth. Renters insurance typically covers loss of property, liability, and medical expenses for people who rent your home. In some states, your landlord will have to provide some sort of renters insurance as well.

In conclusion, we can assist you with your needs moving forward. An investment property mortgage is a type of mortgage that is used by investors to purchase real estate for the purpose of renting it out. Most investors who take on this type of mortgage do so with the intention of making a profit, rather than to live in the property themselves. This means that the investor receives a monthly income from rent and any other taxable benefits or perks connected to ownership, such as tax deductions for depreciation and capital gains. One of the most common reasons that people purchase investment properties is because they believe they can make more money from renting them out, rather than keeping them as their own personal residence.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

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