Neha Joneja, Mortgage Agent Level 2 in Brampton, arranges investment property mortgages for rentals, owner-occupied homes with a legal basement apartment, and growing portfolios. She explains when 20% down is required, how lenders count rent, why City of Brampton registration of a second unit matters, and when banks, B lenders or an insured suite refinance fit.
- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
- Women-owned
How much down payment do I need for a rental property in Brampton?
It depends on one question: will you live in the property?
If you won’t live there, it’s a non-owner-occupied rental. The minimum down payment is 20%, and mortgage default insurance isn’t available. On a $900,000 house bought purely as a rental, that’s at least $180,000 down, plus closing costs.
If you’ll live in one unit and rent the other, such as living upstairs and renting a legal basement apartment, the home can qualify for an insured mortgage with less than 20% down. A two-unit home generally follows the same minimum down payment tiers as a single-family home, so that same $900,000 property could need as little as $65,000 down. Three- and four-unit owner-occupied homes can qualify too, with a larger minimum.
That gap is why many of Neha’s Brampton clients start by buying a home with a suite they live in, then keep it as a rental when they move.
Key numbers
| Situation | Minimum down payment | Insurable? |
|---|---|---|
| Non-owner-occupied rental | 20% | No |
| Owner-occupied, 2 units, $900,000 | $65,000 (5% on first $500,000, 10% on the rest) | Yes, if you meet lender and insurer rules |
| Any purchase of $1.5 million or more | 20% | No |
| Closing costs to budget | Roughly 1.5% to 4% of the price | Not applicable |
Many lenders don’t accept a gifted down payment on a non-owner-occupied rental, so plan for the funds to come from your own savings, investments or home equity.
How do lenders count rental income?
Lenders don’t count all of the rent, and they use one of two methods.
- Add-back: the lender adds a percentage of the rent to your income, then calculates your ratios as usual.
- Offset: the lender subtracts a percentage of the rent from the property’s costs, so the rental’s payment weighs less against you.
For example, a basement suite rents for $1,800 a month. A lender using a 50% add-back would add $900 a month, or $10,800 a year, to your income. A lender using a 50% offset would reduce the property’s monthly costs by $900 instead. The offset method often helps more as your portfolio grows, because each property largely carries itself. Which method a lender uses, and what percentage, is lender-specific.
For a purchase, lenders use a signed lease or the appraiser’s estimate of market rent. For rentals you already own, they look at the rental statement (T776) on your tax return.
Does my basement apartment need to be legal in Brampton?
It should be, and lenders care. The City of Brampton registers additional residential units (often called second units or legal basement apartments). Registration confirms the unit was built with a permit and meets Ontario’s building and fire code requirements.
When the unit is registered, lenders and appraisers are generally more comfortable counting its rent. If it isn’t, a lender may ignore that income completely, appraise the home as a single-family house, or decline an insured owner-occupied two-unit application. Before you firm up an offer on a home in Springdale, Castlemore or Credit Valley that’s advertised with a “basement apartment,” ask the seller for proof of registration and check with the City.
What will the mortgage payment look like?
Run your numbers before you write an offer. A rental should cover the mortgage payment, property tax, insurance, utilities you pay, maintenance and some vacancy time. Lenders also stress test the mortgage, qualifying you at the greater of your contract rate plus 2% or 5.25%.
Mortgage payment calculator
For illustration only. Not a rate quote or an approval.
Approval subject to lender criteria (O.A.C.). Rates subject to change. Figures are estimates for illustration only.
Approval subject to lender criteria (O.A.C.). Rates subject to change. Examples are for illustration only.
Can I refinance to add a secondary suite?
Usually, a refinance is limited to 80% of your home’s value (loan-to-value, or LTV, is the mortgage amount as a share of the value) and can’t be insured. There is one exception. Since January 15, 2025, eligible homeowners can use an insured refinance to fund a secondary suite, such as a basement apartment or garden suite, for a tenant or a family member. Program limits apply, and the suite must meet municipal rules, which in Brampton means the City’s second unit requirements.
If you already have equity, a conventional mortgage refinance or a home equity line of credit can fund the down payment on your next property. A HELOC is a revolving line secured by your home, capped at 65% of its value for the line itself.
How many rental properties can I finance?
There’s no single limit, but it gets harder with each property. Lenders look at your total debt across every property you own, the rent and expenses on each, and the stress test on each new mortgage. Some banks cap how many financed properties one borrower can hold, or the total amount they’ll lend you.
When a bank reaches its limit, alternative or B lenders, which are non-bank lenders with more flexible ratio rules at a higher cost, can often finance the next purchase. Neha’s Level 2 licence lets her place files with banks, credit unions and B lenders side by side. Staggering maturity dates also gives you more chances to move a property to a better lender later. If you’re self-employed, see how lenders read your income on the self-employed mortgage page.
Co-buying with family
Many of Neha’s Brampton clients buy with parents, adult children or siblings. Everyone on title is usually on the mortgage, so everyone’s debts and credit count. If a parent already owns a home, the new purchase may be treated as a rental or second home for them, which changes the down payment rules.
What you’ll need
- Photo ID and income documents (pay stubs and T4s, or T1s and NOAs if self-employed)
- 90 days of statements showing your down payment
- For each property you own: mortgage statement, property tax bill and home insurance
- Current leases and the T776 rental schedule from your tax returns
- Proof of City of Brampton second unit registration, if the home has a basement apartment
- Signed purchase agreement and MLS listing for the new property
Why work with Neha on a rental purchase?
The right lender for your first rental may not suit your third. Neha compares how lenders treat rent, their property limits and prepayment terms. See all purchase options on the buy a home page, talk it through in Punjabi or Hindi, or book a consultation at her office at 7900 Hurontario St, Brampton, ON L6Y 0P6.
Frequently asked questions
Can I buy a rental property in Brampton with 5% down?
Not if you won’t live there: a non-owner-occupied rental needs at least 20% down. If you’ll live in one of the units, such as upstairs with a legal basement apartment below, insured financing with less than 20% down may be available.
Will the bank count rent from a basement apartment that isn’t registered?
Often not. Many lenders only count rent from a legal unit registered with the City of Brampton, and an unregistered suite can also affect the appraisal. Ask for registration proof before you firm up your offer.
Can I use my home equity for the down payment on an investment property?
Yes. A refinance up to 80% of your home’s value or a HELOC can supply the funds, but the new payment counts against you when you qualify for the rental mortgage.
How many investment properties can I have?
It depends on the lender. Some banks limit the number of financed properties or the total they’ll lend, while B lenders can be more flexible. Planning which lender holds each property helps you avoid hitting a wall early.
Can my parents and I buy an investment property together?
Yes. Everyone on title is usually on the mortgage, so all incomes, debts and credit are reviewed, and the down payment rules depend on who will live there.
Can I get a 30-year amortization on a rental?
Often, yes. Amortization is the total time to pay off the mortgage. Uninsured mortgages, including non-owner-occupied rentals, can generally be amortized up to 30 years depending on the lender.
Sources
Prefer to talk now?
Or start your application in Neha’s app (opens in a new tab).
- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
- Women-owned
Last reviewed by Neha Joneja, Mortgage Agent Level 2, November 2026. General information only, not financial advice for your situation.