The previous post was removed because I think the attached image was too large. I've now posted a smaller image. Unfortunately was not able to read comments to that initial post before it got removed...

Would like the forum's opinion before I contact my accountant again.

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While I'm waiting for my pre-approvals from RBC and HSBC, I'm starting to look up fourplexes and simulating numbers on Excel, see which properties are good investments and which are not, from Realtor.ca.

Problem is that as a Canadian citizen but non-resident, I need to have a minimum of 35% downpayment from the 3 banks I've contacted and on top of this, a 25% withholding tax. I don't know at this point if a mortgage broker could even give a better rate (such as a lower downpayment required, or if the 35% is the law).

Examples:

• HSBC (2.89% with a minimum of 40% down for 30 years @ 5 years fixed)
  • Five fourplexes allowed max
• RBC (3.18% with a minimum of 35% down for 30 years @ 5 years fixed)
  • Three fourplexes allowed max
• BMO (5.34% with a minimum of 35% down for 30 years @ 5 years fixed)
  • One fourplex allowed max

The downpayment I can handle if the Cash-on-Cash ROI is good enough, but the 25% withholding tax is taking all profits out. Maybe it's meant to be this way to discourage out of country investors?

Though I've read that if I was still a resident, I'd have to pay 25% gross in taxes anyways while non-residents can file to pay 25% of the net as a withholding. So it would seem that non-residents would have a lower amount deducted from their rental income. In my calculations, I didn't take any chances and just deducted from gross to be on the safe side. Also to see how it would look once I move back to Canada, but this 25% is a killer!

HSBC gave the highest ROI with that extra 5% downpayment and lower rate. Still negative in realistic terms, but the way I've figured how to make it a positive % is to find a fourplex costing me $140,000 with a gross monthly cash flow of $3,500 to receive a 6.34% Cash-on-Cash ROI... seems like no way this fourplex ever exists. Anything realistic between $300,000 - $400,000 in the best circumstances with the same monthly gross just ends me in the negatives ROI for all banks.

Am I missing something here?