Investment Mortgage
An investment mortgage finances the acquisition of real estate held for income generation or capital appreciation, rather than owner-occupation. Typical collateral includes office, retail, industrial or multi-unit residential properties.
Repayment derives from:
- tenant rental payments
- expected property value growth
- investor's own capital contribution
Lenders impose stricter underwriting: evidence of financial capacity, investment thesis documentation, rental cash-flow projections and minimum equity stake. Interest rates typically exceed owner-occupied mortgage rates, reflecting elevated portfolio risk.
