Christine Buemann Mortgage Broker

Thinking about buying a home that has a rental suite? This can be a great idea if you want to help offset the cost of your home expenses, and it can also potentially help with qualifying for a mortgage on your new purchase.  Most lenders will allow you to add 50% of the rental income back to your income for qualifying, however we also have some who will consider 100% for qualified borrowers! This would increase the maximum mortgage available by approximately $65k. Here are a few tips if you are considering this option: Although it may not need to be a "legal" suite, they will want to see that it has a separate entrance along with a kitchen and bathroom in the unit Some lenders may only consider income from the basement unit (in case you plan on living in the upper unit) Roommate income is not allowed by the insurers as rental income Lenders will require a signed lease agreement as confirmation of the rental income. Most prefer a year lease. Some may consider a stat...

If you are looking to buy a rental property, it is important to note that there have been several changes over the past few years. Here are the basics of what you should know: ·          You will need a down payment of at least 20% ·          Some lenders will no longer finance rental properties at all ·          Some lenders are charging the default insurance premiums to the client, regardless of the loan to value ratio ·          You can expect a slightly higher interest rate ·          Remember that you are not able to claim the Home Owner’s Grant on rentals, so you will have to factor in an addition $770 annually into your budget ·          You can expect slightly higher home insurance premiums ·      ...