Best lenders for rental property?

[John Wesbrook]

Hi guys,

I'm currently aggressively saving for a down payment with the goal of getting into the student rental market. Once I get my first property, my goal would obviously be to maximize cash flow. In that regard, I've heard of financing terms in the US where the lender allows you to only make interest payments for the first two years of the loan and start paying down the principal from the third year onward. Are such terms typically available to first time buyers in Canada by the big five banks? 

Thanks!

[Chris Baxter]

A small number of interest-only mortgages may still exist in Canada (see https://www.theglobeandmail.co... ) but I don't think you'll find a lender willing to extend these to investment properties.   More importantly, principal pay-down is one of the key accelerators in wealth creation in real-estate. Why throw it away?  If cash-flow is so tight on the investment that it barely cash flows with conventional financing, you should probably look for a better investment