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Changes to Rental Income Coming Soon

Blog by Claire LeLacheur | March 19th, 2010

According to my mortgage broker there are changes coming in the next month for the way banks will look at income from rental suites. Rowan Smith paraphrases it very nicely like this:

"Unauthorized suite income will no longer be used to assist in qualification for a mortgage as of the rules effective April 19. The new Buyer will have to be able to qualify for the entire house using just your line 150 - or T4 total - income. Even if the suite is authorized, the treatment of rental income is cut severly. A basement suite that rents for $1000/month used to help qualify for $192,000 of mortgage. Under the new rules effective April 19th, 2010 that same $1000 will only help qualify for $53,000 of mortgage. This will dramatically affect pricing of homes in Vancouver where unauthorized suites have been heavily relied on to qualify for home at current prices."

You heard it. If you are looking for a new home, that has to have a mortgage helper, you had better start now.

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