Closed in 2022 · Published October 18, 2026
- Residential
- Prime lender
- Purchase
- Investment property
- Rental
- Commission income
- Purchase price
- about $1.1 million
- Mortgage
- about $880,000
- Loan-to-value
- 80% of the price
- Income used
- 2021 net income of about $110,000
- Rate in 2022
- 4.40%, five-year adjustable, 30-year amortization
The Situation
Eight months after a first home in Coquitlam on an alternative lender's stated-income program, our realtor client bought a three-bedroom top-floor corner condo in downtown Vancouver to rent out, priced at about $1.1 million and assessed at about $1.5 million.
The Challenge
The 2021 return showed about $110,000 net, but the usual two-year average would have pulled in 2020, a first year that grossed only about $97,000, understating an income that had grossed about $380,000 in the first eight months of 2022.
The Solution
In 2022 we placed about $880,000 with a major Canadian bank, 80% of the price, on a five-year adjustable term at 4.40% with a 30-year amortization, qualified at 6.50%. The bank agreed to use the 2021 net income alone, its rental policy counted the condo's tax, strata fees and heat at $1 each, and a 738 score carried ratios of about 30% and 45%.
The Outcome
The client added a downtown rental to the Coquitlam home, with 20% down, about $220,000, from savings.