Your Guide to Real Estate Investment in Canada

Shawn Johnson • March 25, 2026

Your Guide to Real Estate Investment in Canada

Real estate has long been one of the most popular ways Canadians build wealth. Whether you’re purchasing your first rental property or expanding an existing portfolio, understanding how real estate investment works in Canada—and how it’s financed—is key to making smart decisions.


This guide walks through the fundamentals you need to know before getting started.


Why Canadians Invest in Real Estate

Real estate offers several potential benefits as an investment:

  • Long-term appreciation of property value
  • Rental income that can support cash flow
  • Leverage, allowing you to invest using borrowed funds
  • Tangible asset with intrinsic value
  • Portfolio diversification beyond stocks and bonds


When structured properly, real estate can support both income and long-term net worth growth.


Types of Real Estate Investments

Investors typically focus on one or more of the following:

  • Long-term residential rentals
  • Short-term or vacation rentals (subject to local regulations)
  • Multi-unit residential properties
  • Pre-construction or assignment purchases
  • Value-add properties that require renovations


Each type comes with different financing rules, risks, and return profiles.


Down Payment Requirements for Investment Properties

In Canada, investment properties generally require higher down payments than owner-occupied homes.

Typical minimums include:

  • 20% down payment for most rental properties
  • Higher down payments may be required depending on:
  • Number of units
  • Property type
  • Borrower profile
  • Lender guidelines


Down payment source, income stability, and credit history all play a role in approval.


How Rental Income Is Used to Qualify

Lenders don’t always count 100% of rental income.


Depending on the lender and mortgage product, they may:

  • Use a rental income offset, or
  • Include a percentage of rental income toward qualification


Understanding how income is treated can significantly impact borrowing power.


Financing Options for Investors

Investment financing can include:

  • Conventional mortgages
  • Insured or insurable options (in limited scenarios)
  • Alternative or broker-only lenders
  • Refinancing equity from existing properties
  • Purchase plus improvements for value-add projects


Access to multiple lenders is often crucial for investors as portfolios grow.


Key Costs Investors Should Plan For

Beyond the purchase price, investors should budget for:

  • Property taxes
  • Insurance
  • Maintenance and repairs
  • Vacancy periods
  • Property management fees (if applicable)
  • Legal and closing costs


A realistic cash-flow analysis is essential before buying.


Risk Considerations

Like any investment, real estate carries risk.


Key factors to consider include:

  • Interest rate changes
  • Market fluctuations
  • Tenant turnover
  • Regulatory changes
  • Liquidity (real estate is not easily sold quickly)

A strong financing structure can help manage many of these risks.


The Role of a Mortgage Professional

Investment mortgages are rarely “one-size-fits-all.” Lender policies vary widely, especially as you acquire more properties.


Working with an independent mortgage professional allows you to:

  • Compare multiple lender strategies
  • Structure financing for long-term growth
  • Preserve flexibility as your portfolio evolves
  • Avoid costly mistakes early on


Final Thoughts

Real estate investment in Canada can be a powerful wealth-building tool when approached with a clear strategy and proper financing.


Whether you’re exploring your first rental property or planning your next acquisition, understanding the numbers—and the lending landscape—matters.


If you’d like to discuss investment property financing, run the numbers, or explore your options, feel free to connect. A well-planned mortgage strategy can make all the difference in long-term success.


Shawn Johnson

Senior Mortgage Specialist

What You Need to Know About Mortgages and Parental Leave

By Shawn Johnson • August 5, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.

Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect

By Shawn Johnson • July 29, 2026
Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect Thinking about co-signing a mortgage? On the surface, it might seem like a simple way to help someone you care about achieve homeownership. But before you sign on the dotted line, it’s important to understand exactly what co-signing means—for them and for you. You’re Fully Responsible When you co-sign, your name is on the mortgage—and that makes you just as responsible as the primary borrower. If payments are missed, the lender won’t only go after them; they’ll come after you too. Missed payments or default can damage your credit score and put your financial health at risk. That’s why trust is key. If you’re going to co-sign, make sure you have a clear picture of the borrower’s ability to manage payments—and consider monitoring the account to protect yourself. You’re Committed Until They Can Stand Alone Co-signing isn’t temporary by default. Even once the initial mortgage term ends, you won’t automatically be removed. The borrower has to re-qualify on their own, and only then can your name be taken off. If they don’t qualify, you stay on the mortgage for another term. Before agreeing, talk openly about expectations: How long might you be on the mortgage? What’s the plan for eventually removing you? Having these conversations upfront prevents surprises later. It Affects Your Own Borrowing Power When lenders calculate your debt service ratios, the co-signed mortgage counts as your debt—even if you never make a payment on it. This could reduce how much you’re able to borrow in the future, whether it’s for your own home, an investment property, or even refinancing. If you see another mortgage in your future, you’ll want to consider how co-signing could limit your options. The Upside: Helping Someone Get Ahead On the positive side, co-signing can be life-changing for the borrower. You could be helping a family member or friend buy their first home, start building equity, or take an important step forward financially. If handled with clear expectations and trust, it can be a meaningful way to support someone you care about. The Bottom Line Co-signing a mortgage comes with both risks and rewards. It’s not a decision to take lightly, but with careful planning, transparency, and professional advice, it can be done responsibly. If you’re considering co-signing—or want to explore safer alternatives—let’s connect. I’d be happy to walk you through what to expect and help you decide if it’s the right move for you.