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 Guaranty. 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, get in touch with me at 647-893-2535 or [email protected] Sign Up Here for Monthly Mortgage Updates
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