In today’s market with stricter mortgage rules, a rental suite can make a huge difference when qualifying for a mortgage and knowing which lenders offer the biggest bang for your buck is even more important.
Different lenders allow different amounts of the rental income to be added into your qualifying income. Some lenders only allow 50% of the rental income to be used when qualifying for a mortgage, while others allow 80% and even 100%.
If a lender allows 50% of the rental income, and the rent is $1200 per month, this will increase the mortgage you qualify for by just over $40,000, at 80% it increases your mortgage qualifying by over $65,000, and at 100% it boosts it a whopping $84,000. How the different lenders calculate the rental income can make the difference between a yes or a no.
Let us help you get your mortgage application in front of the right lender for your situation. If you want to discuss your personal situation, please let me know, as knowledge is power and having the information will help you make a better decision.
Call Daryl French today at 250-470-8843.
The trade marks displayed on this site, including CREA®, MLS®, Multiple Listing Service®, and the associated logos and design marks are owned by the Canadian Real Estate Association. REALTOR® is a trade mark of REALTOR® Canada Inc., a corporation owned by Canadian Real Estate Association and the National Association of REALTORS®. Other trade marks may be owned by real estate boards and other third parties. Nothing contained on this site gives any user the right or license to use any trade mark displayed on this site without the express permission of the owner.