Rental Income could now help you Qualify for a Bigger Mortgage as CMHC changes rules
The rules around the income from rental units considered in home loan applications submitted to the CMHC are changing.
The agency announced Monday that, as of September 28th, it will allow 100% of the rental income from a unit to be considered for new loan applications submitted to it for mortgage insurance.
What this means is that a secondary rentals suite’s income, minus costs including property taxes, will boost the size of the loan that buyers can secure.
In order to qualify, units must have maintainable income, proven by two years of rental rent payments. These payments will be averaged to evaluate the unit’s income. Applicants will also need a credit rating of at least 680.
Properties with more than a single rental unit will have somewhat different guidelines and this change is most positive for homeowners with one rental unit.
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