Ryan Roth Mortgages

Have you ever thought about buying a home that has a rental suite?

This can be a great idea if you want to help offset the cost of your home expenses, and it can also potentially help with qualifying for a mortgage on your new purchase.

Most lenders will allow you to add 50% of the rental income back to your income for qualifying, however, we also have some who will consider 100% for qualified borrowers!

Here are a few tips if you are considering this option:

→ Ideally the suite should be recognized as “legal” however depending on the lender and location, a “legal, non-conforming” unit is also acceptable.
→ At minimum, this will consist of a separate entrance along with a kitchen and bathroom in the unit
→ Some lenders may only consider income from the basement unit (in the event you planned on living in the upper unit later)
→ Roommate income is not allowed as rental income (some Alternative lenders will consider this however)
→ Lenders will require either a signed lease agreement as confirmation of the rental income or a statement of economic rents (from an Appraiser) in lieu of the agreement.
→ If you want to qualify for the 100% add-back option, you will need to have an excellent credit score.
→ Most lenders will not accept rental income from a family member

If this is something you’ve been thinking about , feel free to contact me for more info.

📱519-535-3270
📧[email protected]

From the Globe article linked in comments:

CRA’s interest rate on overdue taxes will soon rise to 10 per cent, making paying back the agency more expensive and a greater priority for many individuals and already-stretched small business owners.

Since 2007, the rate has remained stable at 5% or 6%. That has changed in recent months.

In the second quarter of 2022, the interest rate on unpaid taxes started a steep incline, and since then rising to 9% In the first quarter of 2024, barring any special CRA measures, the rate will climb from 9% to 10%, double what it has been for most of the past decade. The CRA lists quarterly rates from 2006 onward on its current website, and this will be the first time since then the rate has reached double digits.

The amount owed compounds daily, and the interest comes on top of other penalties for paying late.

If you are behind or anticipating owing a larger amount on your income taxes this year reach out to look at the lowest possible financing.