Investment property in Mississauga, run through a spreadsheet first.

Not if you will not be living in it. Mortgage default insurance is unavailable on non-owner-occupied residential property, so twenty percent down is the floor. The exception is a two to four unit building where you occupy one unit: insured financing may be available with less down, and rental income from the other units can often be used to help you qualify. Confirm the current terms with a mortgage broker.

They can be. Mississauga permits second units in most low-rise residential dwellings, but the unit must be registered with the City and must satisfy Ontario Building Code and Fire Code requirements covering ceiling height, egress windows, fire separation and interconnected alarms. Many existing basement apartments are not registered. An unregistered unit affects your financing, your insurance and how much income a lender will count, so verify before closing rather than after.

Capitalisation rate is net operating income divided by purchase price, where net operating income is gross rent minus every operating expense but before mortgage payments. Small multi-family in the west GTA typically trades in the low-to-mid single digits, which is low nationally because buyers here are paying for land value and appreciation rather than yield. Only compare a cap rate against similar properties in the same market.

Yes, each property carries its own mortgage. Lenders also tighten as your portfolio grows: expect more documentation, more scrutiny of your debt service ratios, and at a certain point a move from residential lenders to alternative or commercial lending with different rates and terms. Building a relationship with a mortgage broker who works with investors is worth more than shaving ten basis points off your first deal.

Commonly, yes, through a refinance or a home equity line of credit, subject to qualifying and to the usual eighty percent loan-to-value ceiling on a residential refinance. It is a standard way to fund a down payment. Understand what it does to your risk though: the two properties are now tied together, so if the rental underperforms the pressure lands on the home you live in.

Net rental income is taxable at your marginal rate. Mortgage interest is deductible but principal is not, alongside property tax, insurance, maintenance, condo fees and professional fees. Capital cost allowance is optional and claiming it can trigger recapture when you sell. The eventual sale is a capital gain, not an exempt principal residence disposition. Use an accountant who actually works with property investors.

A condo is easier to buy, easier to finance, easier to sell, and requires almost no management, but the monthly fee eats the return and special assessments are outside your control. A duplex, triplex or fourplex produces better cash flow and lets you force appreciation through renovation, at the cost of more work and harder financing. Most investors start with a condo and later wish they had started with the multi-family.

The tenancy transfers with the property and Ontario tenant rights are substantial. You inherit the existing rent, which on a long-standing tenancy is often well below market, and rent control limits what you can do about it. Vacant possession is only available where the buyer or an immediate family member genuinely intends to occupy the unit, with proper notice and one month's compensation. Price the property on the rent you inherit, not the rent you hope for.