Mortgage renewal on a rental / investment property
Rental property renewals price 0.10–0.30% higher than owner-occupied because they're considered higher-risk. Most A-lenders use 50–80% of gross rental income for qualification. Staying with your existing lender avoids the rental add-back debate entirely — no re-qualification is required.
What makes this different
- Rental add-back policy varies wildly: some lenders use 50%, others 80%, credit unions sometimes 100%.
- Insured rentals (5–25% down) will typically re-price at higher renewal rates than uninsured owner-occupied.
- If the property is now negative-cash-flow, you may not qualify to switch even though you'd renew fine.
How to approach your renewal
Get retention pricing from your current lender first. Ask specifically if they treat this as rental or owner-occupied — sometimes the file was set up wrong at origination.
Shop with a broker who has access to credit unions (Meridian, DUCA, Alterna). They often price rentals identical to owner-occupied.
Structure matters at refinance: pulling equity out to buy another property is a refinance (max 80% LTV, full stress test), not a renewal. Time these moves carefully.
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Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8