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.

This is fantastic new for the middle income class who find it a challenge to qualify for a mortgage.

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). These are the norm in the Lower Mainland and Okanagan.  It only makes sense to count this as income toward the loan qualifications.

It is a great opening for single family dwellings, where perhaps most people who could not qualify it, ran too the condo/townhouse market.  It will be interesting to see the impact this could have on the condominium market if people start to gravitate to owning actual property.

Keep in mind that only legal units are eligible. Granted there is exceptions (grandfathers non-conforming suites approved by the municipality for example may qualify.)Eligible 2-unit properties must be owner-occupied. The dwelling types are typically duplexes or single homes with a legal secondary suite.

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.  With CMHC rental income changes in your hands.  The Single Family Dwelling is now realistic!!