In follow-up to Debt Ratios 101 which covered the GDS, TDS and DCR ratios, we’ll be looking at the differences between “Rental Add-Back” and “Rental Offset” and the impact of some recent changes on qualifying for financing. Unless you’ve attempted to plan out the financing for your first few purchases, rental add-back or rental offset…
When starting your portfolio, the banks will look heavily at your ability as a borrower to service any loans they provide, with minimal focus on the property itself. During this critical startup phase where you remain in the spotlight, it is important to understand and manage your ratios carefully. Doing so will allow you to…
For my latest rental property purchase, I submitted a cover letter along with my offer to purchase the seller’s property. If you are unfamiliar with this strategy, you may wonder what I’m even talking about since this step is not standard practice. If you’ve used a cover letter before, you may already know just how…
Many of us only think of our RRSP or TFSA accounts only when tax time rolls around, but setting up the right accounts and considering your strategy before the tax rush is a worthwhile idea. In 2009 the Canadian government introduced the Tax-Free Savings Account (TFSA) which is currently available in 3 general flavours: 1)…
Whether you have taken the plunge and become a full-time investor, or currently use your evenings and weekends to acquire and manage properties, as an active investor you are likely to be a busy person. If you’re a veteran investor, you may have the luxury of a little more free time by now, but in…