Financing Multiple Properties in Canada

[Leanne Shum]

Hi all,

I posted something similar in the general financing section but some fellow members suggested I posted in the Canadian section for more specific answers as I am Canadian.

I am very new to real estate but am very interested to pursue a career in real estate in the near future. I apologize in advance if my question is silly/stupid.

My question is, how is it possible to finance for multiple properties at the same time? I'm not sure if that's exactly the way I would like to word my question and I know there are a variety of ways to finance for real estate but let's say, for example, if I put 20% down on a property and get a loan from the bank for the remaining balance of the purchase price. Assuming there is positive cash flow being earned when I rent out the property. A few years later, I save up enough to put another down payment on another property. But doesn't the bank usually look at how much I earn annually to determine how much they will lend me? What if I've reached the maximum that I've been approved for my previous property?

I saw from some where that when you have a x number of units earning income, they start to look at how much cash flow is being generated from the properties to determine how much they approve you for a mortgage. Is that true? And if so, is that the same for all provinces? I currently live in Vancouver, BC.

Thanks so much in advance for your answers and comments.