You will need a deposit when purchasing an investment property, just like buying any other property. However if you already own a home and have established a reasonable amount of home equity, then you may be able to tap into it to fund the deposit on your investment property.
It is also important to avoid cross-collateralisation. Taking out a second mortgage on a property is considered to be cross collateralisation. In such a case, the property is originally used as collateral for the mortgage. The second mortgage is then tapping into the equity that the property’s owner has accrued for collateral.