First rental property loan advice

[Elaine Lee]

I'm new to investing and I'm just starting to put a team together. Currently in the process of chatting with a few realtors. I have a question regarding where I should get my mortgage for this first investment/rental property from.

I currently have a primary residence and its mortgage, but I'm planning to put rental properties under a LLC (or corporations in Canada), what process/place would you recommend I get the first mortgage?

From what I researched so far, (investor-focused) mortgage broker has been recommended a lot, but seems like a mortgage broker is a great way to find loans but not so on saving money. So given I'm at the very early stage, I assume it's easy to just get a loan from a bank (given my reasonable income etc.), would it still be better to talk to a broker?

Thanks!

[Zorya Belanger]

Hi @Elaine Lee There is no cost to use a residential mortgage broker, as they get paid by the lender once the loan is funded. Only for commercial mortgages you need to pay fees yourself, but you won't be getting a commercial loan if the property has 4 units or less. Even though you plan to set up a corporation, you will still be personally qualifying for the mortgage and getting a residential loan. 

I recommend you use a mortgage broker. They will be on your side and help you shop around to different banks/lenders to find best product. If you shop around to different banks on your own, then you get your credit pulled several times, which is not so good. Biggest thing is that a good investor-focused broker should be asking about your long term plan, and helping you use lenders in a strategic order and getting you the right mortgage terms (it's not just about rate) so you can carry out that plan.