Hey there! If you’re sitting on the sidelines wondering when to jump back into real estate investing, this one’s for you.
I’ve been talking to hundreds of investors lately, and everyone’s asking the same thing: “What’s going on with the market? Should I buy now or wait?”
Here’s the deal. I don’t have a crystal ball, but I’ve got years of experience and I’m seeing some clear trends that every investor needs to know about.
Let me break down exactly where we stand and what it means for your next investment.
Interest Rates Have Hit (Almost) Rock Bottom
First, let’s talk about what everyone’s obsessing over - interest rates in Canada.
We’ve been through an absolute rollercoaster. COVID shot real estate prices through the roof. Then the Bank of Canada went crazy with rate hikes - I’m talking rates that went up 3x what they were before. That’s massive.
But here’s what I’m seeing now: rates have dropped almost as low as they’re going to go.
Maybe we’ll see one more cut this year. Maybe not. Most banks think rates will stay flat. Some think they’ll drop a tiny bit. Others think they’ll rise slightly.
My take? We’re at the bottom.
And here’s why that matters for you…
Why You Should Stop Waiting and Start Buying
Remember that old saying about planting trees? The best time was 20 years ago. The second best time is today.
Same thing applies here.
I’ve got hundreds of investors who’ve been waiting on the sidelines. They’re all saying the same thing: “We’ll buy when rates come down.”
Well, guess what? Rates ARE down. And when all these investors realize this is as low as it gets, they’re all going to jump into the market at once.
You know what happens when more buyers compete? Prices go up.
But that won’t last when everyone else figures out what you now know.
With rates near the bottom and competition still low, now is the time to lock in your financing — book a free strategy call with LendCity and we’ll show you what you can qualify for today.
US Market Opportunities Are Getting Even Better
Donald Trump just announced $200 billion in bonds that Fannie and Freddie can purchase. Translation: US interest rates are dropping for homeowners.
This creates more competition from regular homebuyers, which means higher prices over time. But it also means more liquidity and opportunities.
I tell my investors to erase the border. Explore mortgage financing for Canadians investing in the USA and learn why Canadian investors are buying US rental properties. Look at a property in Toronto versus one in Detroit. Which gives you better returns? That’s your answer.
Some people love Trump, some hate him. I don’t care. I care about your bank account and your returns. Politics don’t pay your mortgage - cash flow does.
Smart Strategies That Are Working Right Now
The Missing Middle: ADUs and EDUs
This is huge. I’m seeing tons of investors add additional dwelling units to existing properties.
One client just got financing to add a unit in his basement AND his backyard. We gave him a construction loan, and we’ll refinance with a permanent lender when it’s done.
The rules have gotten way more relaxed. Cities are giving variances they never used to approve. If you had a single-story house, your ADU used to have to be single-story too. Now? They’re letting people add second levels even if the main house is one story.
This could turn a break-even property into a cash cow.
CMHC Multifamily Programs
If you’ve got serious capital, pay attention to this.
We’re building projects from 8 units up to 94 units using MLI Select with 95% loan-to-cost - up to 95% of project value with 50-year amortizations.
You need 5+ units to qualify. And here’s the kicker - you get better rates than single-family properties. I’m seeing low threes instead of low fours.
Alberta is the sweet spot right now. You don’t have to take rent reductions like you do in Ontario. Edmonton wants to double their population in 10 years, so there’s massive growth coming.
If you’re considering scaling into apartment buildings or 5+ unit properties, the multi-family mortgage financing options available right now are genuinely some of the best we’ve seen — CMHC-insured programs with 50-year amortizations and rates below conventional single-family. That spread matters enormously over the life of a project.
Alternative Asset Classes in the US
Investors are getting creative. I’m seeing way more:
- RV and trailer park purchases
- Storage facility investments
- Fix and flip operations
A year ago, nobody was looking at this stuff. Now it’s hot. If you’re considering fixer-uppers, be aware of the issues when buying distressed properties before jumping in.
From ADU construction loans to CMHC MLI Select with 95% loan-to-cost, the right program depends on your project — book a free strategy call with us and we’ll match you with the best financing fit.
The Bottom Line: Time to Act
Look, I get it. Uncertainty makes people nervous. But here’s what I know:
- Rates are at or near the bottom
- Inventory is still good for buyers
- Competition is low (for now)
- Canadian mortgage financing programs are available
When all those sidelined investors realize what you now know, your window closes.
Don’t be the investor who waits for the “perfect” time. There’s no perfect time. There’s only right now and the opportunities in front of you.
Key Takeaways:
- Interest Rates Have Hit (Almost) Rock Bottom
- Why You Should Stop Waiting and Start Buying
- US Market Opportunities Are Getting Even Better
- Smart Strategies That Are Working Right Now
- The Bottom Line: Time to Act
Frequently Asked Questions
Should I buy now or wait for rates to drop more?
Is investing in US real estate worth it for Canadians?
What are ADUs and EDUs, and should I consider them?
How much do I need to invest in CMHC multifamily projects?
Why is Alberta better than Ontario for multifamily investing?
What alternative asset classes should I consider?
How do I know if it's a buyer's market right now?
Should politics affect my real estate investment decisions?
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed mortgage professional before making any financing decisions.
Written by
LendCity
Published
January 26, 2026
· Updated February 12, 2026Reading time
6 min read
Bank of Canada
Canada's central bank that sets the overnight lending rate, which influences prime rates and mortgage costs across the country. Rate decisions directly impact variable mortgage rates and overall borrowing costs for real estate investors.
CMHC MLI Select
A CMHC program offering reduced mortgage insurance premiums and extended amortization (up to 50 years) for multifamily properties with 5+ units that meet energy efficiency or accessibility standards. Popular among investors scaling into larger apartment buildings.
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).
Down Payment
The upfront cash payment when purchasing a property. For 1-4 unit investment properties, minimum 20% down is required. 5+ unit multifamily can use CMHC MLI Select with lower down payments, and house hackers can put as little as 5% down on owner-occupied 2-4 plexes. Your down payment directly affects your [LTV](/glossary/ltv) and the amount of [leverage](/glossary/leverage) you use.
Cap Rate
Capitalization Rate - the ratio of a property's [net operating income (NOI)](/glossary/noi) to its current market value or purchase price. A 6% cap rate means the property generates $60,000 NOI annually on a $1,000,000 value. Used to compare investment properties regardless of financing. See also [DSCR](/glossary/dscr) and [Cash-on-Cash Return](/glossary/cash-on-cash-return).
CMHC Insurance
Mortgage default insurance from Canada Mortgage and Housing Corporation. For 1-4 unit investment properties, investors must put 20%+ down (no insurance available). However, CMHC offers MLI Select for 5+ unit multifamily properties, and house hackers can access insured mortgages with 5-10% down.
Multifamily
Properties with multiple dwelling units, from duplexes to large apartment buildings. Often offer better cash flow and economies of scale.
Single Family
A detached home designed for one household, the most common property type for beginner real estate investors.
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.
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).
Construction Loan
Short-term financing used to fund building a new property. Funds are released in stages (draws) as construction milestones are completed, and interest is charged only on drawn amounts. Construction loans typically convert to permanent financing upon project completion.
Loan-to-Cost Ratio
The percentage of a development project's total cost that a lender will finance. Unlike LTV which compares loan to appraised value, LTC compares loan to actual project costs including land, construction, and soft costs.
ADU
Accessory Dwelling Unit - a secondary residential unit on a single-family property, such as a basement suite, laneway house, garden suite, or in-law suite. ADUs increase rental income and property value while leveraging existing land and infrastructure.
Construction Financing
A short-term loan that funds the building or major renovation of a property, disbursed in stages (draws) as construction milestones are completed. Once building is finished, the construction loan is typically replaced with a permanent mortgage through a process called takeout financing. Interest is charged only on the amount drawn.
Hover over terms to see definitions. View the full glossary for all terms.