The Stock Watcher
Sign InSubscribe
Popular

Navigating Investment Property Mortgage Rates: What You Need to Know

 
Share this article

Understanding the current trends and factors affecting investment property mortgage rates.

an image of a modern apartment building with a 'for rent' sign outside, showcasing a potential investment property.

Investment property mortgage rates are typically one percentage point (and up to four points) higher than traditional home loans. According to Freddie Mac, the rate for a 30-year fixed-rate mortgage averaged 7.22% for the week ending May 2nd. Mortgage rates have increased somewhat this year, and they remained elevated in March, with 30-year rates hovering around 7%.

How are mortgage interest rates determined? What moves them? And what can you do to get the lowest rate? Bankrate explains all. To arrive at the rates above, we added 50 basis points to the average rate for a 30-year, fixed-rate mortgage. Mortgages for investment properties can range greatly, depending on various factors such as credit score, property type, and loan amount.

Learn how to unlock value from rental properties with a home equity loan and how to access your funds for investments and property improvements. Continuing to maximize TFSA contributions makes sense because it will increase the amount of tax-free assets you have. Second home mortgage rates vs. investment property mortgage rates. Mortgage interest rates are higher for second homes and investment properties.

After tapping the home equity in your rental unit, you can use the funds to make improvements, scale up your portfolio, or pay off high-interest debts.

Labels:
investment propertymortgage ratesfreddie macfixed-rate mortgagehome equity loantfsa contributionsrental propertiessecond homesinterest ratesportfolio
Share this article