How it works.

There's always a method behind the madness. This is worth it.

Your Investment Profile

Approaching real estate as an investor can be highly rewarding when done right. There’s a lot involved from the property itself and its condition, the neighborhood potential, how much you’re willing to put down as down payment, and the mortgage you receive from the bank. With each property you evaluate, you’re providing the down payment amount, how much revenue its expected to generate (if you were to rent it out) and the number of units/apartments the property has. In every evaluation, you can adapt your profile to see how you can approach a property of choice to maximize the return on investment. A great looking property in a less attractive neighborhood can be a bad investment while a rundown property in a more attractive neighborhood can be a much better investment. At the end, what matters is how much you pay for it considering what you can afford to change and maintain, given the potential growth of the area and its demand.

Mortgage financing

Our mortgage rates are provided by Ratehub.ca. All calculated payments are done using the most common method used by bank which consider rates to be nominal rates with bi-annual frequency. Please note that actual payments might slightly defer but should not in any way of for affect the overall evaluation of your investment. The Mortgage Loan Insurance is required in Quebec whenever your down payment is under 20%. We have calculated the exact price this insurance would cost you if you were to go with CMHC (Canada Mortgage and Housing Corporation) which is the most common one. Note that other insurers like Genworth other offer this insurance so do not hesitate to shop. Please note that our calculation use the ongoing rates of the CMHC Capital Payment: Note that in every mortgage payment you make, a portion goes to reimburse the capital and the rest is to pay the interest to the bank. With time the proportion of capital paid increases with each payment and the interest decreases. Capital earned in your real estate investment is considered to be a combination of capital acquired from the capital reimbursement of you mortgage payments and capital gain from the increase of your property value. Refinance: The eligible amount for refinancing is calculated using the most common factor of 80% of your projected property value (considering all capital gains) from which we subtract the residual amount owed on your mortgage. Please note that some banks might use other ratios and that this does not take your revenue nor credit into account. This can be different in your circumstances.

Neighbourhood Potential

We have data from every area in Quebec, Canada (for now). Through in-depth analysis and historical studies we have gathered statistics on the attractiveness of the area (distance to nearby places and pedestrian friendliness) to get you an accurate estimation of three key metrics: How a property’s value will appreciate, its potential vacancy rate, and how its rent may perform over time

Return on investment

Every investment comes down to the returns it will generate for the investor. As an informed investor, this is the number that matters for every investment. The Return on Investment is the rate at which the investment will grow every year considering all the future cash flows that go into maintaining the property and paying off any mortgage as well the cash flows that you get as revenue from rent. We use the property evaluation with your investment profile to compare it to an equivalent portfolio in the US Stock Market (S&P index) which we estimated to generate a 6.5% annual return.