Financing student rentals in Hamilton

Hamilton, Ontario: Home to McMaster University, Redeemer University, Mohawk College and a campus of Brock University. Needless to say, the demand for student housing is high.

Financing student rentals can be a lot more difficult than finding the students to fill them.

The Royal Bank of Canada is one of the only major lenders offering an actual “Student Rental Mortgage” program.

With the RBC program, there are no worries about the appraiser reporting that the property is being used as a student rental complete with locks on all the bedroom doors.

RBC Student Housing Mortgage requirements

  • 30% down payment
  • $55,000 personal income for 1 property (rental income not included)
  • $75,000 personal income for 2 or more properties (rental income not included)
  • Net worth of $100,000 excluding real estate holdings (RRSP’s, stocks, bonds etc)
  • Maximum loan amount of $500,000 per property.
  • 5 property limit.

RBC will also allow you to use 50% of the rental income from the subject student rental provided signed lease agreements are in place.

You are also allowed to purchase the property in the name of a holding company, provided that it is only real estate related and the owners (maximum 2) sign as guarantors.

The property cannot be held in trust.

RBC will also grant a mortgage to a “Non-resident” with 35% down and proof of income from one of their many approved countries.

Residential mortgage rates apply. $250.00 appraisal fee for all properties.


For more information, contact Katie Morrison, RBC Mortgage Specialist (905) 515-1173

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