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
GET STARTED

What You Need to Know About Mortgages and Parental Leave

By Josh Perez • July 8, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
Suburban two-story house with a front porch, two-car garage, and a large tree-lined lawn.

Gifted Down Payment in Ontario? Don't Skip This Step

By Josh Perz • July 7, 2026
Using a gifted down payment to buy a home in Ontario? Learn exactly what lenders require — and the common mistakes that can delay or derail your approval.