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Six essential return metrics in one place: Cap Rate, Cash-on-Cash Return, Gross & Net Yield, NOI, and DSCR — with Canadian mortgage math, investment property rules, a 5-year projection, and deal grading benchmarked against Canadian market standards.
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| Year | Gross Rent | NOI | Cashflow | Equity | Home Value | Total Return |
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Canadian real estate investors use six core metrics to evaluate rental properties. No single number tells the full story — a strong cap rate with poor cashflow, or great cashflow with a low DSCR, both signal risk in different ways. The best deals score well across multiple metrics simultaneously.
Canadian context: Investment properties require a minimum 20% down payment — CMHC mortgage default insurance is not available for non-owner-occupied properties. Lenders also count only 50% of gross rental income toward your TDS ratio when qualifying for mortgages, which affects your ability to scale a portfolio. Rental income is fully taxable as business income in Canada, though you can claim deductions for mortgage interest, property taxes, insurance, maintenance, and management fees.
Run the numbers before you buy, sell, or invest — estimate payments, taxes, affordability, and potential returns in seconds.
A good rental property in Canada typically shows a positive cash flow, a cap rate that beats the mortgage rate and a debt service coverage ratio (DSCR) above 1.1 to 1.25. Enter the price, rent, expenses and financing to see your numbers.
Net operating income (NOI) is rent minus operating expenses (not including the mortgage). Cap rate is NOI divided by the price. Cash-on-cash return is annual cash flow after the mortgage divided by the cash you invested. DSCR is NOI divided by annual mortgage payments, and lenders often want 1.1 or more.
Reviewed November 2026 by the mortgage team at Top Mortgages Inc. Figures are estimates for general information. They are not a quote, an approval or financial advice, and lenders set their own final terms.
It varies by city and property type. Many investors look for a cap rate above their mortgage rate; 4% to 6% is common in major cities.
The annual pre-tax cash flow divided by the total cash you put in (down payment, closing costs and renovations).
Debt service coverage ratio is net operating income divided by mortgage payments. Lenders usually want at least 1.1 to 1.25.
Typically 20% for a one-to-two-unit rental, or 20% to 35% for larger or non-owner-occupied properties, depending on the lender.
A calculator gives an estimate. A licensed mortgage professional can tell you what you actually qualify for, at no cost, and your credit is not checked to start.
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