Thinking of Buying a Home with a Rental Unit?2015-10-22 09:12:53 Posted By Jila Rezai
As of September 28th, Canada Mortgage and Housing Corporation (CMHC) changed it's borrowing rules to help facilitate more affordable housing in Canada.
Previously, home owners with legal rental units could use 50% of the rental income towards their total income. With the new rules in effect, borrowers can count 100% of the rental income towards their total income.
Keep in mind that only legal units are eligible and the 2-unit properties must be owner-occupied. In addition, the suite must be self-contained with its own entrance. The dwelling types are typically duplexes or single homes with a legal secondary suite.
In order to be applicable, mortgage applicants must demonstrate a strong history of managing credit with a minimum credit score of 680.
Please contact your mortgage advisor if you have any questions regarding the purchase of a home with a rental unit. They are there to help!
For all other real estate needs, questions or for a market evaluation, please call or text me at 604-773-3599.