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.

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. The suite must be self-contained with its own entrance.

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). 

Mortgage applicants must demonstrate a strong history of managing credit with a minimum credit score of 680.

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.

Have mortgage questions?  I'm here to help you!

Please feel free to contact me with any questions you may have.  It would be a pleasure to assist you or any one of your friends or family members!