AGENT LICENSE # M13002164 - BROKERAGE LICENSE # 11995

CMHC announces new rules for home owners with rental suites

CMHC announces new rules for home owners with rental suites

As of September 28th, 2015, CMHC will be changing it’s borrowing rules to help facilitate more affordable housing in Canada.

 

Currently, home owners with legal rental units can use 50% of the rental income towards their total income which means that home buyers can borrow more money.

 

When the new rules come into affect, borrowers can count 100% of the rental income towards their total income.

 

Borrowers with less than 20% downpayment are required to buy mortgage default insurance which is available from CMHC, Genworth Canada and Canada Guarantee.

 

So if you have less than 20% and are interested in buying a home with a legal rental unit, CMHC will be the insurer for you.

 

But keep in mind that only legal units are eligible. Eligible 2-unit properties must be owner-occupied. The dwelling types are typically duplexes or single homes with a legal secondary suite. Some examples of typical secondary suites in 2-unit homes include self-contained basement rental suites, in-law apartments and garden suites (i.e. laneway homes).

 

If you are considering buying a rental property, talk to me and I can help you find the mortgage product that will suit your situation.

 

Add Comment

Your email address will not be published. Required fields are marked *

I want to express my gratitude for all the work that you have done for me over the last few months. I would like to say thank you for listening, understanding my needs, your patience, and promptness in getting things done. Before our meeting, I was ready to give up and walk away from everything, but you managed to calm me down and set up a plan that would work for me. It was very easy to work with you, everything was made clear and easy to follow, today I’m a new person because a lot of stress has been lifted off and I can function. Thank you again for your professional support, excellent work, and always going the extra mile

Tracy Petersen

I have had the opportunity to have Daniel Char address my personal banking needs. I was impressed with his communication skills, professionalism and follow-through with any of my requests and concerns. The service that he provided to myself was exceptional and I would recommend Daniel to both present and future clients.

Chris Nagle
Paste your AdWords Remarketing code here