All Forum Posts by: Sarah Robertson

I am interested in building a 4plex located in Northwestern Ontario, Canada. We have extreme winters that maintain -30 degrees Celsius for months on end. 

My husband wants to build using electric baseboard heat, and have tenants pay their own utilities. He seems to think that the electricity bill will not be that expensive, as the apartments will be well insulated by sharing 2 walls (2 front, 2 back apartments).

I have major concerns with the electric bills being so high that we will not be able to maintain occupancy since our winters are extremely cold. 

Does anyone have experience with extreme winters and electric heat in apartments? 

Thank you everyone! 

@Theresa Harris

But say you have 5 mortgages set for 25 years @4%, then our economy crashes, and then your interest rate go up to 8% at your next renewal? 

Aren’t you worried that you won’t be able to keep up with the interest increase since you can’t just increase your rent? 

Thanks Roy! I appreciate your input. :)

Looking for Canadian rental property mortgage advice.

How long do Canadian investors set their mortgages?

In the US it’s most beneficial to choose a 30 year fixed.

Here in Canada you can have a 30yr mortgage, but you must renew every X number of years (usually every 4-5 years if you want a low interest rate).

Unfortunately anything above a 15 year fixed seems a bit risky, especially with the threat of a possible economic crisis upon us.

I would hate to have several 25-30 year mortgages at 3.4%, and in 5 years being forced to renew at 8%+ for the remainder.

It seems to me, it would be the safest plan to pay off one mortgage at a time as soon as possible, then invest into another property to avoid getting caught in foreclosures.

However, doing it this way eliminates the power of leverage... how do Canadians do this while reducing risk?