Closed in 2023 · Published October 17, 2026
- Residential
- Prime lender
- Purchase
- Investment property
- Rental
- Rental suite
- Purchase price
- $467,000
- Mortgage
- $373,600
- Loan-to-value
- 80%
- Monthly rent
- $3,000
- Income gross-up
- 20%
The Situation
A married couple in Saskatoon jointly own two established moving companies, their own home and a rental condo in Calgary held since 2017. In 2023 they set out to buy a second rental: a five-bedroom bi-level with a legal basement suite in Saskatoon's Evergreen district, priced at $467,000 and renting for $3,000 a month.
The Challenge
A third mortgaged property, on top of a home mortgage of about $582,000 and the Calgary condo's mortgage of about $261,000, had to clear the bank's rental worksheet, with the couple's pay drawn from their own companies.
The Solution
In 2023 we placed a mortgage of $373,600 with a major Canadian bank, 80% of the price, on a three-year fixed term at about 5.2% with a 30-year amortization. The bank averaged two years of the couple's T4 income from their companies, about $228,000 and $223,000, and grossed it up by only 20% to about $271,000, which, with the new rent, carried debt-service ratios of about 11% and 43% and a rental coverage of 1.12 on its worksheet. The down payment of $93,400 came from business savings, with about $609,000 US more held in reserve.
The Outcome
The couple now hold three properties, two of them rentals, financed at a bank rate on the income their companies already pay them.