CMHC has announced it will allow 100% of the rental income from legal secondary suites to be used when qualifying for a mortgage. Currently it allows 50%.
Rental suites are a source of affordable housing with rents often lower than a traditional rental unit. Secondary/basement suites also give lower-income Canadians the chance to live in single-family residential neighbourhoods while providing extra income to the home owner.
The new rules will start on September 28th. If you are considering a home with a rental suite you need to do your homework. Check with the municipality to be sure that it is a legal rental suite and that it is eligible for the new rules.
More details will become available from CMHC closer to the new rules taking affect.
Sales Representative EXIT Realty Twin Bridges Brokerage