mortgage when you already have few rental but no personal income

[Jason Rego]

I am in Southern Ontario, have few rental properties already and want to buy few more; my mortgage advisor said they are not able to finance any more; because my income does not support buying rental properties. No longer working so I do not have income for the last two years.

Do have large saving and some large personal credit line for down-payment for 20%-40%. Very good Credit.

What are some alternate option for getting a mortgage for buying rental property?

[Roy Cleeves]

@Jason Rego

Hi Jason:  I ran into this same situation except that I was still working yet my income would not support any more residential rental mortgages.  I had to step up to Multifamily and commercial financing.  Now the bank will approve my purchases based upon cash flow of 1.2 Debt coverage ratio on a property and my networth being at least 25% or more of the purchase price of the property.  

This is much easier for me to meet.  To qualify for the commercial financing you will need to have 5 or more units in the multifamily purchase or bring your portfolio of your current rentals into the commercial financing as a package.

I hope this helps.

You will find that commercial financing is about 1% more in the rate than residential and that you will also have an annual review of the portfolio by the bank at your expense.  Maybe $500 - $1000 per year.

Best wishes