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Small Rental Program (Non-Owner Occupied)

Get financing for rental properties, including condo, single family, duplex, triplex and fourplex rentals.

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Small Rental Program Details
Eligible MCAP Products

Insurable loans maximum 2-4 units
Uninsurable loans maximum 1-4 units

  • Standard 5 year Fixed Rate
  • VIP M-Power (5 year closed)
Purpose
  • Purchase, refinance, port / replacements, Purchase Plus Improvements, transfer
Property Type
  • Non-owner occupied condo, single family, duplex, triplex and fourplex rentals
  • Maximum 4 rental properties per borrower. Maximum 2 with MCAP
  • Contact MCAP for details on fire code requirements (retrofit), applicable in Ontario only
  • Located within 30 kms from markets with populations exceeding 25,000
  • Insurable minimum 750 sqft, condo 500 sqft
  • Uninsurable minimum 850 sqft, condo 500 sqft
  • Excludes:
    • Condo Conversions
    • Properties in Chatham and Brampton ON
    • Condo that is part of any type of condo hotel and/or legally tied to a rental pool agreement
    • Manufactured/mobile homes
    • Zoned Agricultural or Land reserve
  • Restrictions: Quebec restricted to the following areas:
    • Greater Montreal Metropolitan Area
    • Greater Quebec City
    • Greater Sherbrooke
    • Greater Hull-Gatineau Area
    • Greater Trois-Rivieres Area
Rate
  • 120 day rate hold with 5 Year Fixed and Variable (no pre-approvals)
  • All loans are subject to a surcharge in rate. See rate sheet for details
Loan Amount

Insurable and Uninsurable:

  • Minimum $50,000
  • Maximum $600,000 (exceptions available for GVA/GTA)
Maximum LTV
  • 80% — uninsurable
  • 80% — insurable (client paid insurance premium)
  • 70.01 — 80% LTV — minimum net worth of $100,000 required
Down Payment

From own resources (no gifts)

Amortization*
  • Minimum 5 years (15 years VIP M-Power)
  • Maximum 25 years — insurable
  • Maximum 30 years — uninsurable
Payment Options
  • Monthly, semi-monthly, bi-weekly, weekly (accelerated)
  • Flexible payments and payment day
Early Payout
  • Early Payout Premium
    • Greater of 3 months interest or IRD for Fixed Rate 5 Year Closed
    • 3 months interest for VIP M-Power
  • Reinvestment Fee: $500 in Yr 1, $400 in Yr 2 and $300 in Yr 3 of your term
20% + 20% Prepayment Privilege
  • Lump sum up to 20% of the original principal amount (minimum $100)
  • 20% increase in payment, incremental fixed amount can be added to principal and interest payment
Other
  • Maximum 2 rental properties with MCAP per borrower, some exceptions may apply
  • Maximum 4 rental properties (including those held at other financial institutions) per borrower
  • Available with Home Mortgage Protection (mortgage life insurance)
  • Portable, assumable and transferable upon approval
  • Uninsurable loans — maximum $200,000 equity take out
* Some exceptions available for transfer ins. See Transfer Program fact sheet for details.
Status Restrictions may apply. Please refer to your Business Development Manager or underwriter for further details.
Subject to change without notice.

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