Are you feeling discouraged in your quest for home ownership with home prices expected to rise another 9% in 2016?
Don’t give up! Perhaps a house with a rental suite could be the right solution for qualifying for your mortgage and meeting your monthly payments. Did you know that 25% of detached houses in BC contain a rental suite? In the Lower Mainland, 40% of houses having rental suites.
This week over on REW.ca, Scott Allan shares how you can use rental offset rules to increase your mortgage from $255,000 to $400,000.
Typically, CMHC laws legislate that no more than 32% of your income can be used to pay your mortgage payment, property tax, strata fees, and home heating costs. Banks are able to add 50% of your potential rental income to your income which only ups your mortgage limit by a little.
This is where rental offset CMHC rules come into play. If you find a mortgage lender who can use a rental offset system, they will deduct the rental income from the monthly mortgage payment rather than adding it to your income. After showing an example rental offset calculation, Allan comes out with the potential to obtain a much higher mortgage.
Interested in using rental income to offset your mortgage? Let’s start exploring the Surrey or Langley real estate markets for houses with rental suites. Our award winning agents at The Taylor Team would be happy to put together a complete list of current MLS listings that meet your criteria.
We also work closely with qualified mortgage brokers who can explain how rental offset rules apply to your situation and help you see what you can afford.