Using secondary home mortgage for a rental property

[Wesley Quoc]

Good morning everyone. I'm currently in the process of buy my first property to put out for rent. I have been pre-approved for an investment property loan at a 4.25% interest rate, but after talking to another broker, she told me that I should go with a second home mortgage instead of an investment loan because the rate for that is only 3.35%. I thought you can't use secondary home mortgage for rentals? Am I wrong? She assured me that as long as I don't put it out for rent right away and just live there for 1 month and everything will be fine?

Any input is truly appreciated. 

Thanks