Investment Mortgage
A mortgage on commercial or residential property purchased with the intent to generate returns through rental income or property appreciation.
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.
