Buy

Rehab

Rent

Refinance

Repeat

BUY — Acquisition

Purchase Price ($)

Initial Down Payment ($)

20.0% — minimum required for investment property

Closing Costs ($)

~2–4% of purchase price. Include LTT, legal, title.

Initial Mortgage Rate (%)

Investment properties typically 0.25–0.50% above owner-occupied.

REHAB — Renovation

Rehab / Renovation Budget ($)

After Repair Value — ARV ($)

Forced appreciation: —

Holding Costs During Rehab ($)

Mortgage payments + utilities during renovation period.

Rehab Contingency (%)

Industry standard: 10–20% buffer on rehab costs.

RENT — Income & Expenses

Monthly Gross Rent ($)

Vacancy Rate (%)

Canadian average: 2–5% in major markets.

Monthly Property Tax ($)

Monthly Insurance ($)

Property Management (%)

Typical PM fee: 8–12% of monthly rent. Set 0 if self-managed.

Maintenance Reserve (%)

% of monthly rent. Recommended: 5–10%.

REFINANCE — Pull Equity

Refinance LTV (%)

Max 80% LTV for investment property refinance in Canada (uninsured). Most lenders cap at 75–80%.

Refinance Rate (%)

Stress test applies: must qualify at max(rate+2%, 5.25%).

Amortization (years)

Refinance Closing Costs ($)

Appraisal, legal, discharge penalties.

BRRRR Deal Analysis

Analyzing

Cash Left In Deal

—

after refinance

Monthly Cashflow

—

after all expenses

Cash-on-Cash Return

—

annual / cash left in

Deal Grade

—

Full Deal Breakdown

TOTAL COST BASIS
Purchase Price	—
Rehab Cost (incl. contingency)	—
Acquisition Closing Costs	—
Holding Costs During Rehab	—
Total Cost Basis	—
REFINANCE
After Repair Value (ARV)	—
Refinance Amount (—% of ARV)	—
Refinance Closing Costs	—
Net Cash Recovered	—
CASH POSITION
Cash Left In Deal	—
MONTHLY CASHFLOW
Effective Rental Income (after vacancy)	—
Mortgage Payment (on refinanced amount)	—
Property Tax	—
Insurance	—
Property Management	—
Maintenance Reserve	—
Monthly Cashflow	—
Annual Cashflow	—

Canadian Investment Property Compliance Notes

Estimates only. Actual returns vary based on market conditions, tenant quality, interest rates, and renovation costs. Consult a licensed mortgage broker and accountant before investing. Investment income is taxable in Canada.

BRRRR Strategy in Canada — What You Need to Know

BRRRR is one of the most powerful real estate wealth-building strategies available to Canadian investors. By purchasing distressed properties below market value, renovating to force appreciation, then refinancing to recycle your capital, you can build a rental portfolio without tying up capital indefinitely.

Canadian-specific rules matter: Investment properties require a minimum 20% down payment — CMHC mortgage default insurance is not available for non-owner-occupied properties. On refinance, most Canadian lenders cap the LTV at 75–80% for investment properties, and the OSFI stress test applies (you must qualify at your rate + 2%, or 5.25%, whichever is higher).

Rental income counting: lenders typically use 50% of gross rental income in TDS/GDS calculations. Some B-lenders and private lenders count up to 80–100%. This affects how much you can borrow on subsequent properties.

The 1% Rule

A useful screening metric: monthly rent should be ≥ 1% of total acquisition cost. In Canadian markets, 0.7–0.8% is more realistic. Use it to filter prospects, not as a final decision.

The "Infinite Return"

If your cash recovered via refinance exceeds your total cost basis, you've achieved an infinite return — zero capital left in a cash-flowing asset. This is the BRRRR holy grail and is achievable with disciplined buying and efficient renovations.

CCA & Tax Implications

Rental income is fully taxable in Canada. You can claim Capital Cost Allowance (CCA/depreciation) to defer taxes, but this is recaptured on sale. Consult a tax accountant familiar with investment property before buying.

Seasoning Period

Most Canadian lenders require you to hold the property for 6–12 months before refinancing based on ARV (rather than purchase price). Budget adequate holding costs and factor this into your total cost basis.

BRRRR FAQs

Investment properties in Canada require a minimum 20% down payment. CMHC mortgage default insurance is not available for non-owner-occupied properties. If you purchase a 2–4 unit property and live in one unit, you may qualify for insured financing with as little as 5–10% down under the owner-occupied rules.

Most Canadian lenders allow a maximum refinance LTV of 80% on investment properties (uninsured). Many conservative lenders cap at 75%. The OSFI stress test applies — you must qualify at the higher of your contract rate + 2% or 5.25%. Some B-lenders and private lenders offer higher leverage with different qualifying criteria.

Most major Canadian banks count 50% of gross rental income when calculating your TDS ratio for refinance qualification. Some lenders use an "offset" method. B-lenders may count 80–100% of rental income. This affects how much you can borrow and how quickly you can scale your portfolio.

No — loan proceeds from a cash-out refinance are not taxable income in Canada. This is one of the key advantages of BRRRR over selling. However, rental income is taxable, and capital gains apply when you eventually sell (50% inclusion rate as of current rules). Capital Cost Allowance (CCA) can defer tax — consult a tax accountant.

Tools & Calculators

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BRRRR Investment
Calculator — Canada

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BRRRR InvestmentCalculator — Canada

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BRRRR Strategy

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BRRRR Investment
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