How do interest rates for an investment property such as a duplex compare to primary residence rates?

Thanks in advance!

Typically interest rates for non owner occupied properties are higher than for a primary residence. Of course all the other variables are in play as well, ie loan to value ratio, credit scores/history, etc.

Multi units (more than 4 units) like apt buildings are another matter entirely and would have to go commerical financing.

One other point of clarification, if you are going to live in that duplex and rent the other side it does NOT make that an investment property. Therefore you would be able to apply for loans as a primary residence. The same is not true for 3-4 unit properties even if you are going to live there. Lenders would condsider those to fall under investment property guidelines.

Good luck

Make sure if it is not going to be your primary residence that you do not claim it to be when applying for the loan just to get the cheaper interest rate.In the loan docs you will usually sign that this loan is for a primary residence,getting a loan under false pretences is committing loan fraud.Investor loans always have a higher interest rate built in because lenders and banks know when times get tough you will let your assetts go first that are investments and will protect your primary residence because it is where you live and sleep everyday so you will fight more to keep it.

Also, if you're going Full-Doc and claiming the Investment property as Primary, make sure that it matches with what is claimed on the first page of the Income Tax.

Rates are developed using risk factors. There is an article talking about these risk factors on my website http://www.InvestorMortgage.org under the section What are your rates?

You'll see that occupancy is only one of the factors (a big one) but only one.

You'll also see some samples of actual rates we've quoted recently based on all the different risk factors.

Let me know if you have any questions
Danny