The Power of Leverage in Real Estate Investing

Josh Perez • July 11, 2024

Leverage is one of the most attractive aspects of real estate investing. For every dollar you have to invest, you can acquire an asset worth 5, 10, or even 20 dollars. This significantly increases your overall rate of return and accelerates your wealth-building potential.

"Leverage is one of, if not the most attractive part, about real estate investing. For every dollar you have to invest, you can acquire an asset that's worth 5, 10, or $20, significantly increasing your overall rate of return and the ability to accelerate building wealth."

Traditional Residential Financing

With traditional residential financing, your personal income, credit, and monthly obligations play a significant role in determining how much you can borrow. Typically, you may qualify to borrow up to 80% of the purchase price or appraised value of a rental property. This means that for every dollar you put down, you could potentially control an asset worth five times that amount.


Commercial Financing

Commercial financing, on the other hand, focuses on the net operating income (NOI) or profitability of the property. Depending on these factors, you might qualify to borrow up to 75% or, if you're fortunate, 80% of the property's purchase or appraised value. This type of financing allows investors to leverage the property's income-generating potential rather than their personal financial situation.


CMHC Multi-Unit Financing

Canada Mortgage and Housing Corporation (CMHC) offers even more attractive options for multi-unit financing. CMHC has designed two programs that allow investors to leverage up to 85% or even 95% of the purchase or appraised value of a multi-unit building. These programs provide significant advantages:

  • Larger or Higher Yielding Projects: With higher leverage, investors can enter larger or more profitable projects than they might otherwise afford.
  • Reduced Down Payment Requirements: By requiring less capital upfront, investors can maintain liquidity to explore additional value-add properties.
  • Capital for Improvements: Investors can use freed-up capital to make improvements that increase income or reduce expenses.
  • Increased Refinance Opportunities: Improved properties can be refinanced to access more capital, which can be reinvested to acquire additional assets and further accelerate wealth-building plans.


Leverage is a powerful tool in real estate investing, enabling you to amplify your returns and grow your portfolio more rapidly. With various financing options available, from traditional residential loans to commercial and CMHC multi-unit programs, investors have multiple avenues to explore and maximize their investments.


To learn more about building wealth with multi-family real estate investing, schedule a call with us today. Together, we can create a strategy that leverages your investment to its fullest potential and helps you achieve your financial goals.

Josh Perez
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Worried About Your Mortgage Renewal? You’re Not Alone

By Josh Perez • June 18, 2025
Worried About Your Mortgage Renewal? You’re Not Alone  If your mortgage renewal is coming up soon, you're likely feeling a bit of financial pressure—and you’re not the only one. A recent survey shows that over half of Canadian homeowners believe their upcoming mortgage renewal could impact their current living situation. With interest rates still higher than what many borrowers locked in before 2022, 45% of those renewing in the next 12 months expect their monthly payments to increase. Even though the Bank of Canada has held its key overnight rate steady at 2.75%, borrowing costs remain elevated compared to the low-rate years we saw earlier in the decade. And that’s changing how Canadians think about their finances. Changing Plans and Tightening Budgets Among those worried about their renewal, 73% say they’re already cutting back on discretionary spending—things like eating out, entertainment, or travel—to brace for higher mortgage payments. For many, it goes deeper than just trimming the budget. Nearly one in four surveyed homeowners said they’re rethinking their entire financial strategy. Some are pressing pause on home renovations (43%), while others are considering downsizing or relocating to a more affordable area (29%). A smaller group (15%) is even open to major lifestyle changes, like moving in with roommates or relocating to a new neighbourhood altogether. Fixed-Rate Mortgages on the Rise In this climate, most homeowners looking to renew are leaning toward fixed-rate mortgages, with 75% preferring the stability of predictable payments. For those facing uncertainty, locking in a rate for the next few years can offer peace of mind—even if it means paying a little more in the short term. First-Time Buyers Are Feeling It Too It’s not just current homeowners feeling the pinch. A separate survey found that more than half of Canadians planning to buy a home are cutting back on non-essential spending to save for their down payment or other buying costs. About 31% are even considering tapping into savings or investment accounts like TFSAs, RRSPs, or first-time home savings accounts to make their purchase possible. What This Means for You Whether you’re preparing to renew or purchase for the first time, this environment calls for smart, strategic planning. You’re not alone in feeling uncertain—but with the right guidance, you can navigate these changes confidently. Have questions about your upcoming renewal or wondering what type of mortgage is right for today’s market? Let’s connect. We're here to help you make informed, confident decisions about your home financing.

What Is A Spousal Buyout?

By Josh Perez • June 18, 2025
If you’re going through or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property and buy out your ex-spouse. If you’re like most people, your property is your most significant asset and is where most of your equity is tied up. If this is the case, it’s possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program. It’s called the spousal buyout program. Here are some of the common questions people have about the program. Is a finalized separation agreement required? Yes. To qualify, you’ll need to provide the lender with a copy of the signed separation agreement, which clearly outlines asset allocation. Can the net proceeds be used for home renovations or pay off loans? No. The net proceeds can only buy out the other owner’s share of equity and/or pay off joint debt as explicitly agreed upon in the finalized separation agreement. What is the maximum amount that you can access through the program? The maximum equity you can withdraw is the amount agreed upon in the separation agreement to buy out the other owner’s share of the property and/or retire joint debts (if any), not exceeding 95% loan to value. What is the maximum permitted loan to value? The maximum loan to value is the lesser of 95% or the remaining mortgage + the equity required to buy out other owner and/or pay off joint debt (which, in some cases, can total < 95% LTV. The property must be the primary owner-occupied residence. Do all parties have to be on title? Yes. All parties to the transaction have to be current registered owners on title. Your solicitor will be required to confirm this with a title search. Do the parties have to be a married or common-law couple? No. Not only will the spousal buyout program support married and common-law couples who are divorcing or separating, but it’s also designed for friends or siblings who need an exit from a mortgage. The lender can consider this on an exception basis with insurer approval. In this case, as there won’t be a separation agreement, a standard clause will need to be included in the purchase contract to outline the buyout. Is a full appraisal required? Yes. When considering this type of mortgage, a physical appraisal of the property is required as part of the necessary documents to finalize the transaction. While this is a good start to answering some of the questions you might have about getting a mortgage to help you through a marital breakdown, it’s certainly not comprehensive. When you work with an independent mortgage professional, not only do you get a choice between lenders and considerably more mortgage options, but you get the unbiased mortgage advice to ensure you understand all your options and get the right mortgage for you. Please connect anytime; it would be a pleasure to discuss your needs directly and provide you with options to help you secure the best mortgage financing available. Also, please be assured that all communication will be held in the strictest of confidence.