🏠 Investment Property Mortgages in Peterborough: Tips for Landlords

Hello Landlords & Investors,

The Peterborough real estate market is showing steady growth with more inventory and competitive mortgage products available. If you’re considering buying an investment property in 2025, here’s what you need to know about financing, costs, and opportunities.

📊 Peterborough Market Snapshot

• Average sale price: $710,000 (up from $694,000 last year)
• Sales activity: +37% year-over-year in June 2025
• Inventory: Up 7.5%, giving buyers more options
• Price growth forecast: 2% through end of 2025

With modest price increases and more properties to choose from, it’s a market that rewards careful planning.

💰 Mortgage Highlights for Investment Properties

Here’s what sets investment mortgages apart from owner-occupied financing:

• Down Payment: Typically 20–25%+ required
• Rates: Slightly higher than primary residence mortgages
• Qualification: Strong credit, proven income, conservative rental estimates required
• Amortization: May be capped or restricted on multi-unit properties

Pro Tip: Lenders love strong financials—clean credit reports, clear income docs, and realistic expense plans all help.

🧠 Smart Tips for Landlords

1. Work with a Local Mortgage Broker – They know which lenders offer the best terms for rentals.
2. Lock in Rates – Pre-approval protects you from sudden rate hikes.
3. Use Conservative Projections – Assume vacancies and repairs when calculating cash flow.
4. Understand Regulations – Ontario’s Residential Tenancies Act impacts landlord obligations.
5. Plan for Expenses – Insurance, maintenance, and property management fees add up quickly.
6. Think Taxes – Mortgage interest, property taxes, and certain expenses are deductible.

📈 Example: Peterborough Duplex Numbers

Result: Close to break-even cash flow, with long-term gains from appreciation and principal repayment.

⚠️ Risks to Watch

• Rising interest rates → can squeeze cash flow
• Vacancies → higher inventory can mean more competition
• Maintenance surprises → especially in older properties
• Regulation changes → rent control & landlord-tenant laws impact ROI

🏁 Bottom Line

Peterborough’s market offers opportunity for savvy investors—if you have strong financials, realistic cash flow expectations, and a solid financing plan.

Written by Mike Cara, an award-winning Mortgage Broker in Peterborough with over 30 years of local lending experience.