DSCR Loan Canada vs US: The 2026 Cross-Border Guide

Picking between a Canadian DSCR program and a US DSCR loan isn’t really a rate decision. It’s a structural one — different lender ecosystems, different qualification math, different tax wrappers, and a foreign-exchange line item that shows up nowhere on a US-only or Canada-only comparison.

This guide is the cross-border pillar for Canadian investors trying to figure out which DSCR path actually fits their next deal — and how the two programs really stack up in 2026.

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What Is a DSCR Loan? (And Why Canada and the US Mean Different Things)

DSCR stands for Debt Service Coverage Ratio — gross rental income divided by total debt service (principal, interest, property taxes, insurance, and HOA or condo fees if applicable). A property with $3,000 in monthly rent and $2,400 in total monthly debt service has a DSCR of 1.25.

That definition is universal. The product behind it is not.

In the US, a “DSCR loan” is a standardized, non-QM mortgage product offered by dozens of specialized non-bank lenders. It’s a 30-year fixed (sometimes 5/1 or 7/1 ARM), closes in an LLC, doesn’t need tax returns, and has been priced and packaged consistently across the country since roughly 2019. It is the dominant financing channel for US rental property scaling.

In Canada, there is no equivalent standardized retail product called a “DSCR loan.” What Canadians sometimes call a DSCR loan is really one of three things:

• A commercial mortgage on a 5+ unit multifamily, mixed-use, or commercial property, where the lender qualifies the deal on the property’s Net Operating Income at a minimum DCR (typically 1.20-1.30).
• A B-lender rental program that uses a rental offset or cash-flow worksheet to qualify a 1-4 unit residential investment property without leaning on T4 income.
• A CMHC-insured multifamily program (MLI Standard or MLI Select), where the property’s stabilized rents and DCR drive the loan amount.

The practical takeaway: a Canadian investor who wants a 30-year fixed, no-tax-returns, LLC-closing DSCR loan can only get that south of the border. North of the border, they get cash-flow-based qualifying — but inside the Canadian commercial or alternative-lending wrappers, which look and behave very differently.

DSCR Loan Canada vs DSCR Loan US: The 12-Point Comparison Table

This is the side-by-side most Canadians are looking for. The numbers below reflect what we see in 2026 on actual closed deals, not what either side markets.

This is the bones. The rest of this guide explains what each row actually means and where each program breaks down.

How DSCR Works in Canada (And Why It’s Hard to Access)

If you walked into a Canadian bank branch and asked for a “DSCR loan,” you’d get a blank stare. The label doesn’t exist in retail Canadian banking. The cash-flow-based path absolutely does — it just lives in three separate corners of the market.

Commercial DCR (5+ units, mixed-use, plazas, industrial). This is the closest thing Canada has to a true DSCR loan. The lender underwrites the property’s Net Operating Income, applies a stress factor to vacancy and expenses, divides by debt service, and looks for a 1.20-1.30 minimum DCR. Rates in 2026 sit in the roughly 4.25-6.50% range depending on whether you’re at a Schedule I bank, a credit union, or a B-lender, and depending on whether the deal is CMHC-insured or conventional. For a deeper breakdown, our walkthrough of property cash-flow qualification under Canadian DCR rules goes deeper on the calculation mechanics.

B-lender rental cash-flow programs (1-4 units). Lenders like Equitable, Home Trust, and Haventree run programs that use a rental offset at 80-100% (versus the big banks’ 50%) or a dedicated cash-flow worksheet to qualify the property on its rents. The OSFI B-20 stress test still applies on the borrower side — but the heavy lift is on the property, not the T1 General. Rates run 5.50-7.00% in 2026, with 1-2% lender fees on most deals.

CMHC MLI Standard and MLI Select. These are technically insured mortgage programs, but the underwriting is fundamentally DCR-driven. The lender takes the property’s stabilized NOI, divides by debt service, and finds the maximum loan that holds a 1.10 (MLI Select) or 1.20-1.30 (MLI Standard) DCR. MLI Select unlocks up to 95% loan-to-cost on multifamily — the highest leverage available anywhere in Canadian or US real estate finance. For a complete program walkthrough including the points system, see our CMHC MLI Select multifamily pillar.

The Canadian cash-flow lending ecosystem is real and powerful — it’s just fragmented across three different product categories with three different lender shortlists. That fragmentation is exactly why brokers exist as a distribution channel in Canada and why a Canadian investor trying to scale rentals needs someone who knows all three sub-markets, not just the one their last deal closed in.

How DSCR Works in the US for Canadian Investors

The US DSCR market is the opposite story: highly standardized, widely available, and engineered from the ground up as a non-QM investor product.

Here’s what a US DSCR loan looks like for a Canadian foreign national in 2026:

• 30-year fixed rate at 6.87-7.99% depending on DSCR, LTV, FICO equivalent, and prepayment penalty terms (a stronger DSCR or longer prepay lockout drops the rate)
• 70-75% LTV on purchase (some lenders 75% with 1.25+ DSCR; most cap at 70% for foreign nationals under $150K loan size)
• No income verification. No tax returns, no employment letter, no pay stubs. The property qualifies.
• No US FICO required. Your Canadian Beacon score is typically not pulled or scored. Foreign-national programs use property-only underwriting.
• ITIN required for tax filing and W-8BEN management; the lender will sometimes require ITIN as part of the file, sometimes accept an EIN-only close.
• Close in an LLC (or LP) — no due-on-sale ambiguity, the entity is the borrower from day one.
• 30-45 day close standard; the fastest closings happen in 11-14 days on a clean file.

The full mechanics of the foreign-national side are covered in our DSCR loans for foreign nationals guide. The mechanics of using a calculator to size your deal before you submit are in our US DSCR loan calculator.

The structural difference matters: a Canadian who has been declined by every domestic A and B lender because of complex self-employment income, a maxed-out personal DTI, or a portfolio that’s hit the 4-5 property “bank wall” can almost always still close on US DSCR — because none of those Canadian constraints translate.

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Currency, FX, and the All-In Cost Math

This is the section every “DSCR loan Canada vs US” article on the internet skips. Rate comparisons in isolation lie. The honest comparison runs in the buyer’s home currency.

A practical CAD/USD example, 2026 numbers.

You’re a Canadian investor with $150,000 CAD to deploy. You’re weighing a $600,000 CAD duplex in southwestern Ontario versus a $360,000 USD fourplex in Cleveland.

Canadian deal (75% LTV B-lender at 5.99%, 30-yr amort):

• Purchase price: $600,000 CAD
• Down payment: $150,000 CAD (25%)
• Loan: $450,000 CAD at 5.99%
• Monthly P&I: ~$2,690 CAD
• Gross rent: $3,800 CAD/month
• After taxes, insurance, vacancy, management: ~$3,050 CAD net income
• DCR: ~1.13. Tight, but qualifies on a 1.10 program.
• Pre-tax monthly cash flow: ~$360 CAD

US deal (75% LTV DSCR at 7.49%, 30-yr fixed):

• Purchase price: $360,000 USD ($504,000 CAD at 1.40 FX)
• Down payment: $90,000 USD ($126,000 CAD)
• Loan: $270,000 USD at 7.49%
• Monthly P&I: ~$1,888 USD
• Gross rent: $3,400 USD/month
• After taxes, insurance, vacancy, management: ~$2,650 USD net income
• DSCR: ~1.40. Strong.
• Pre-tax monthly cash flow: ~$762 USD = ~$1,067 CAD at 1.40 FX

The Canadian deal has the lower rate. The US deal has roughly 3x the pre-tax cash flow per dollar invested — and you used less of your Canadian capital to do it.

The FX line items most investors miss:

• Spot conversion at purchase. Using a specialized FX provider versus your retail bank typically saves 1.0-1.5% on the down payment alone — on $90,000 USD, that’s $1,000-$1,400 CAD in your pocket at closing.
• Repatriation drag. If you bring rents home to Canada monthly, FX spread eats into yield. Most cross-border investors leave rents in a US business account and only repatriate when needed (capital event, distribution to holdco, etc.).
• Hedging the loan principal. Your $270,000 USD loan is a USD liability. If CAD strengthens to 1.20, your loan is suddenly cheaper to pay off in CAD terms (good). If CAD weakens to 1.50, it’s more expensive. Most retail investors don’t hedge; institutional Canadian cross-border investors sometimes do.
• Tax-paid in USD, deducted in CAD. US property taxes and insurance are USD expenses. They’re deductible against Canadian rental income on your T776, converted at the average annual exchange rate per CRA rules.

The all-in cost math almost always favours the US side once you’re past 1-2 doors. The rate gap is real; the cash-flow gap is bigger.

Cash Flow Expectations: Canadian Properties vs US Properties

Why does US DSCR almost always cash-flow better per dollar invested? Three reasons.

Lower entry prices. A $360,000 USD ($500,000 CAD) fourplex in Cleveland, Toledo, Memphis, or Birmingham is roughly equivalent in cash-flow terms to a $700,000-$900,000 CAD fourplex in a comparable Canadian secondary market like Sudbury, Sault Ste. Marie, or Saint John. Same rents, half the entry cost.

Higher cap rates. US secondary markets routinely trade at 7-9% cap rates on stabilized small multifamily. Canadian secondary markets are mostly 4.5-6% cap rates. That gap is structural — Canada’s land scarcity, building code costs, and property tax regimes all push acquisition costs up faster than rents.

30-year fixed term. A US DSCR loan locks your payment for 30 years. A Canadian rental mortgage renews every 5 years and gets re-amortized at whatever rate exists then. If you’re underwriting a 10-year hold, the US loan has roughly half the rate risk.

The trade-off: US secondary markets carry different operational risk. Tenant laws vary state-by-state and county-by-county. Property management is essential because you’re not driving by. Insurance costs are climbing fast in flood- and hail-prone markets. These are real, but they’re solvable with a good US property manager and a careful market selection — they don’t eliminate the cash-flow advantage, they just shape where you deploy.

Tax Structuring: Holdco/Opco in Canada vs LLC in the US

This is where most cross-border investors get into trouble. The lender doesn’t care how you hold title beyond what their underwriting allows. The CRA and the IRS care a lot.

Canadian rental holdco/opco basics.

Most active Canadian investors with 5+ doors eventually move properties into a corporation (or a series of corps and a holdco). The structure looks roughly like this:

• Operating company (Opco) owns the rentals and earns net rental income.
• Holding company (Holdco) owns the Opco shares and receives intercorporate tax-free dividends from the Opco.
• Net rental income inside a CCPC (Canadian-Controlled Private Corporation) is generally taxed as passive investment income at roughly 50%+ at the federal/provincial combined rate, with a portion refundable via the RDTOH (Refundable Dividend Tax on Hand) mechanism when dividends flow out.
• The structure provides creditor protection, succession flexibility, and the ability to retain after-tax dollars inside the corporate group rather than paying out at personal marginal rates.

Whether this structure is right for you depends on income, province, succession plans, and provincial land-transfer-tax rules. This is a tax-and-legal decision, not a lending decision.

US LLC structuring for Canadians — be careful.

The US side is where Canadians regularly stumble. A simple single-member LLC is treated as a “disregarded entity” by the IRS — fine for a US person, problematic for a Canadian. The CRA does not treat a US LLC as a flow-through; it’s treated as a foreign corporation. The result can be classic double-taxation: the IRS taxes the rental income at your personal level (because the LLC is disregarded), and the CRA doesn’t grant a foreign tax credit cleanly because the income is taxed at the corporate level in their view.

The historical fix is to layer the structure:

• US Limited Partnership (LP) holds the rental property.
• LLC acts as general partner or manager of the LP for liability protection.
• The LP is a flow-through for both IRS and CRA purposes — symmetric treatment, foreign tax credits work properly.

There are other configurations (Canadian Holdco owning a US C-corp owning the property, ULC structures, etc.) — each with different rate and reporting consequences.

FIRPTA basics. When a Canadian (or any foreign person) sells US real property, FIRPTA requires the buyer to withhold 15% of the gross sale price and remit it to the IRS, pending the seller filing a US tax return and reconciling the actual gain. You get the withholding back if it exceeds the actual tax owed, but it’s a cash-flow drag on exit. Many investors apply for a withholding certificate before close to reduce the FIRPTA hold to the actual estimated tax.

The hard rule: never adopt a cross-border structure from a blog post (including this one). Run any entity decision through a cross-border CPA and a cross-border tax lawyer who has signed off on the same structure for at least a handful of comparable clients in your province.

Which DSCR Path Fits Which Investor?

After about a thousand cross-border conversations at LendCity, the decision usually comes down to four investor archetypes.

1. The Canadian rental scaler with strong domestic income. You’re a W-2 or T4 professional in Canada, you’ve got 1-4 doors, your bank is starting to push back on the next one. Use Canadian B-lender rental cash-flow programs first — the rates are 200-300 bps lower than US DSCR and your capital is already CAD. Switch to US DSCR when you hit the lender exposure wall or want true 30-year rate certainty.

2. The self-employed Canadian whose T1 General doesn’t tell the real story. You write down line 150 for legitimate tax planning. Canadian B-lender stated-income or US DSCR both solve the income-documentation problem. US DSCR usually wins because there’s no stress test on the property side and the LLC closing simplifies asset protection. Lower-rate Canadian B-lender works if the deal is north of the border and the cash-flow holds at a 1.20+ DCR.

3. The portfolio investor at the 4-5 door bank wall. You have a Canadian portfolio that’s pinned against the big-bank exposure caps. You can rotate to Canadian alternative lenders for a few more doors, but US DSCR genuinely opens a new lane — different lender ecosystem, different currency, different market dynamics. This is where most scaling Canadians end up on the US side.

4. The high-net-worth Canadian doing multifamily / commercial in Canada. You’re not buying a $400K fourplex — you’re buying a $4M 24-unit. The right path is almost always CMHC MLI Select (95% LTC, 50-yr amortization, 4.25-5.00% rates) for the Canadian commercial side, with US DSCR as the small-deal scaling lane on the side. The math doesn’t compete; the products do different things.

Our Canadian DSCR-style loan service page and the parallel US DSCR service page for Canadians lay out the structures we use for each.

Real-World Deal Examples

Case Study 1: Canadian DCR Refinance — Triplex in Hamilton

Profile. Self-employed marketing consultant, 38, Hamilton-based. Three rental doors, all 1-4 unit residential. The fourth property — a triplex held for two years, purchased at $720,000 CAD — is up for renewal at the big bank that’s also her personal banker. The bank’s renewal offer assumes her line-150 income (~$58,000 reported on the T1 General after legitimate business write-offs), and the math doesn’t qualify her on the existing balance.

The cross-border view. US DSCR doesn’t help here — the property is in Canada, she lives in Canada, the equity is CAD-denominated. The right move is a Canadian B-lender rental cash-flow program. The triplex’s actual rents have grown from $4,800/month to $6,100/month over two years. A B-lender willing to use 90% rental offset qualifies the deal cleanly on the property side.

Result. Refinanced to 75% LTV at 5.99%, 1-year B-lender term, with 1% lender fee financed in. Pulled $40,000 CAD of equity at the same time, which became the down payment on the next deal. Total cash freed: $40K; monthly debt service roughly flat; debt-coverage ratio of 1.34 on the new loan.

Key takeaway. Even when US DSCR is the long-term scaling plan, the right move on a Canadian property is almost always a Canadian cash-flow program. Don’t refinance Canadian assets through a US lender — the FX, withholding, and tax consequences don’t justify the effort.

Case Study 2: US DSCR Acquisition — Toledo Fourplex for a Canadian Investor

Profile. Married couple in Mississauga, mid-40s, dual-income professionals with three Ontario rentals (a duplex and two single-family rentals) all already past the big-bank rental exposure cap. They have $150,000 USD parked in a US business account from a previous closed deal.

The cross-border view. Canadian financing for a fifth Ontario door means moving to a B-lender at 6-7% on a stress-tested file. The US side opens up a completely different deal universe — Toledo fourplexes trade at 8.5-9.5% cap rates and the 30-year fixed locks the rate.

The deal. Fourplex on Toledo’s east side, $310,000 USD purchase, fully leased at $3,150 USD/month gross. After property taxes ($4,200/year), insurance ($1,800/year), 8% management, 5% vacancy reserve: ~$2,360 USD/month net operating income.

Financing structure. US DSCR, 75% LTV ($232,500 USD loan) at 7.24% on a 30-year fixed with a 5-year step-down prepay (5/4/3/2/1). Monthly P&I: $1,583 USD. DSCR: 1.49. Closed in a Delaware LP with a Canadian-resident-owned LLC as general partner, after a 6-week structuring engagement with their cross-border CPA.

Total cash required at close (USD): $77,500 down + $9,300 closing costs + $4,500 LLC/LP setup + $3,000 ITIN/EIN setup = ~$94,300 USD (roughly $132,000 CAD at 1.40).

Result year one (USD). Gross rent $37,800. Operating expenses $9,600. NOI $28,200. Debt service $19,000. Pre-tax cash flow $9,200 USD = ~$12,900 CAD. Cash-on-cash return: ~9.8% pre-tax on the all-in CAD investment, before appreciation.

Key takeaway. The US DSCR rate is roughly 100-150 bps higher than the equivalent Canadian B-lender rate — but the deal cash-flows on roughly 60% of the capital it would have taken to buy the equivalent door in the Greater Toronto Area. The rate premium is the cost of the access.

Where Each Program Breaks Down

Both sides have failure modes. The honest ones nobody on either side wants to advertise.

Canadian DCR / DSCR pitfalls:

• Renewal risk every 5 years. Your Canadian rental mortgage isn’t really 25-30 years long — it’s a 5-year contract you’ll re-negotiate at unknown future rates 5-6 times across the amortization. The 2024-2026 renewal cliff was a brutal example.
• B-lender fee stack. 1-2% lender fee plus 1% broker fee on B-lender deals adds up. On a $400K mortgage, that’s $8,000-$12,000 in financing costs.
• OSFI stress test on B-20-regulated lenders still applies on residential rental. Credit unions and some private lenders can sidestep it; B-lenders cannot.
• Lender exposure caps at every lender, formal or informal. Once you’ve got 4-5 doors at Equitable, they’ll stop taking new files until some season out.
• CMHC product complexity. MLI Select is incredible — and 6-12 months of application/underwriting work, not a fast-money path.

US DSCR pitfalls (Canadian side):

• Prepayment penalties bite when you refinance. A 5/4/3/2/1 step-down on a $250K loan is $12,500 in year one if you exit.
• FX rate at sale. If CAD weakens during your hold, your USD equity grows in CAD terms. If CAD strengthens, you lose. Most investors don’t hedge.
• FIRPTA withholding at exit — 15% of gross sale price held back pending tax return reconciliation. Not lost, but a cash-flow drag at the moment of sale.
• State-level tax filings. You’ll file a federal 1040NR and a state non-resident return every year, plus a Canadian T776 with foreign tax credits.
• Bad property management ruins the deal. You’re 500-2,000 miles away. The wrong PM in the wrong market eats your cash flow in 12 months.
• Insurance volatility. Florida, Texas Gulf Coast, parts of Arizona — property insurance has doubled or tripled in some markets in the last three years. Underwrite conservative.

The point isn’t that either program is bad. It’s that both have specific failure modes that need to be priced into the deal before close, not after.

How to Apply for DSCR Financing Through LendCity

LendCity has been brokering cross-border DSCR deals since before “DSCR loan” was a standard label south of the border. Founder Scott Dillingham has 15+ years across both markets, FSRA-licensed in Ontario for the Canadian side, and a network of US wholesale DSCR lenders specifically for Canadian foreign-national files. You can read more about the LendCity team and how cross-border files actually run.

The process for a typical cross-border investor:

1. 30-minute strategy call. We map your goals against current Canadian and US programs side-by-side. No commitment.
2. Property identification phase. You bring a deal (Canadian or US). We run the numbers through the Canadian DSCR-style calculator and the US DSCR calculator to confirm the deal cash-flows at the qualifying ratio.
3. Lender pricing. Canadian side: we shop the file across A-lenders, B-lenders, credit unions, and MICs. US side: we price across our wholesale DSCR lender shortlist (rates are property-specific, so this is per-deal).
4. Pre-approval letter issued. Real underwrite, not a rate hold.
5. Offer / closing. We coordinate with your cross-border CPA, your realtor (and a US realtor if applicable), and the appropriate title/legal teams on each side.
6. Funding and post-close. Same broker for the life of the file — you’re not handed off.

If you’re a Canadian investor weighing your next deal between domestic and US, book the strategy call. We’ll run both paths through the actual numbers before you commit a dollar.

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Frequently Asked Questions

Conclusion

DSCR loan Canada vs DSCR loan US isn’t a single-product comparison — it’s a comparison of two entirely different lender ecosystems serving the same underlying purpose. Canadian cash-flow lending is fragmented across commercial DCR, B-lender rental, and CMHC multifamily programs, with the lowest pure rates and the most leverage on insured multifamily. US DSCR is standardized, foreign-national-friendly, 30-year fixed, LLC-closing, and unlocks a different set of markets at higher cap rates.

For most Canadian investors scaling beyond their domestic bank wall, the right answer is parallel portfolios — Canadian DCR for Canadian assets, US DSCR for US assets, and a cross-border CPA on retainer to keep the tax structuring clean. The rate gap is real, the access gap is bigger, and the cash-flow math usually justifies running both lanes in 2026.

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LendCity

Published

May 15, 2026

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23 min read

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Dscr Loans Cross Border Us Investing Mortgage Financing Mortgage Qualification

Key Terms

DSCR

DSCR

Debt Service Coverage Ratio - a metric that compares a property's [net operating income](/glossary/noi) to its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than needed to cover the debt. Lenders typically require a minimum DSCR of 1.0 to 1.25 for investment property loans. See also [Cap Rate](/glossary/cap-rate) and [Cash Flow](/glossary/cash-flow).

DSCR Loan

DSCR Loan

A loan qualified based on the property's [Debt Service Coverage Ratio](/glossary/dscr) rather than the borrower's personal income, popular for US investment properties. The property's [NOI](/glossary/noi) and [cash flow](/glossary/cash-flow) determine qualification.

Coverage Ratio

Coverage Ratio

A measure of a property's ability to cover its debt payments, typically referring to DSCR. Commercial lenders often require a minimum of 1.2, meaning the property's net operating income exceeds debt payments by at least 20%.

LTV

LTV

Loan-to-Value ratio - the mortgage amount expressed as a percentage of the property's appraised value or purchase price (whichever is lower). An 80% LTV means you're borrowing 80% and putting 20% [down](/glossary/down-payment). Lower LTV generally means better [interest rates](/glossary/interest-rate) and terms. See also [Equity](/glossary/equity) and [Leverage](/glossary/leverage).

Cash Flow

Cash Flow

The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management. Positive cash flow is the primary goal of buy-and-hold investors. See also [NOI](/glossary/noi), [Cash-on-Cash Return](/glossary/cash-on-cash-return), and [Vacancy Rate](/glossary/vacancy-rate).

Refinance

Refinance

Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.

Foreign National

Foreign National

A foreign national is a non-Canadian citizen or permanent resident who seeks to purchase real estate in Canada. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts most residential purchases by non-Canadians and is currently in effect until January 1, 2027 — narrow exceptions apply, and the end date can change by regulation. Where a purchase is permitted, foreign nationals typically face higher down-payment requirements, additional lender scrutiny on proof of income and funds, and may be subject to provincial foreign-buyer taxes. Confirm current federal and provincial rules with a Canadian real estate lawyer before acting.

ITIN

ITIN

Individual Taxpayer Identification Number - a US tax ID for foreign nationals, required for Canadians to invest in US real estate and file US taxes.

LLC

LLC

Limited Liability Company — a US business structure commonly used to hold US investment properties. Important caveat for Canadian residents: the CRA generally treats a US LLC as a corporation for Canadian tax purposes, which can create mismatched treatment with the IRS and double taxation; many cross-border advisors recommend a US LP (with an LLC as general partner) or direct ownership instead. Entity choice is a legal and tax decision — consult a cross-border attorney and a CPA experienced in Canada–US tax before forming one.

Holdco Firpta

FIRPTA

Foreign Investment in Real Property Tax Act - a US tax law requiring buyers to withhold taxes when purchasing real estate from foreign sellers. Important for Canadians selling US properties.

Commercial Mortgage

Commercial Mortgage

Financing for commercial properties like retail, office, or multifamily buildings with 5+ units, with different qualification criteria than residential mortgages.

Conventional Mortgage

Conventional Mortgage

A mortgage with 20% or more down payment, not requiring default insurance. This is the standard financing type for investment properties in Canada, as high-ratio (insured) mortgages aren't available for pure rentals.

Rental Income

Rental Income

Revenue generated from tenants paying rent on an investment property. Gross rental income is the total collected before expenses, while net rental income subtracts operating costs to show actual profitability.

Interest Rate

Interest Rate

The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed. Interest rates directly affect monthly payments, [cash flow](/glossary/cash-flow), and [DSCR](/glossary/dscr). See also [Amortization](/glossary/amortization).

Hover over terms to see definitions. View the full glossary for all terms.