Buying a Home with an Income Suite in the Comox Valley
Good news reported by Canadian Mortgage Trends:
The new rule takes effect September 28, 2015."
"Here’s what we’ve gathered thus far, with respect to what’s required to use 100% of suite income with CMHC:
- The property must be owner-occupied.
- The property being insured can have only two units (i.e., a duplex or a single home with a legal secondary suite).
- Rental income cannot be used if the suite is “illegal/non-conforming” but “legal non-conforming” is okay. (Non-conforming means that the suite was grandfathered in before zoning/regulations restricted such units. You can check with the city to confirm if a suite is legal.)
- The suite must be self-contained with its own entrance.
- Property taxes and heat must be factored into the borrower’s debt ratios (which is currently not the case when using rent from legal secondary suites).
- For existing units, there must be two-year history of rental income from the suite. The maximum rental income allowed for qualification is a two-year average of the unit’s rent.
- For new units, a market rent appraisal can be accepted if an appropriate vacancy rate has been applied to the estimated rental income.
- Mortgage applicants must “demonstrate a strong history of managing credit” with a minimum credit score of 680."
This is good news to Comox Valley buyers that are considering a property with a mortgage-helping rental income. Higher density living is a positive thing for many reasons and is encouraged, for the most part, by our municipalities. It's great for walkability, helps local business, health, sustainability and a positive sense of community. It's also a great help to paying down your mortgage faster.
3244 Piercy Avenue, Courtenay City
Once in lifetime location. 2 homes. Oceanfront Marine Drive across the road, enjoy the ocean and mountain glimpses from the covered porch of vintage inspired home. The main home has lovely antique windows with fir trim, fir wood floors with cherry border, front door with metal peekaboo window and other vintage features including garden nook. Updated laundry and bathroom with vessel sink. 3 bedroom home. Metal roofs on both homes. The second home is 441 square feet with one bedroom, updated bathroom, tucked at the back. The property is .34 of an acre with outside hot rock sauna, studio/garage off second home. Small orchard, lovely garden areas. Quiet country road, walk to down town Courtenay on an oceanfront nature path. Unique property. **2 HOMES
220 2nd Street, Old Orchard, Downtown Courtenay
Contact Jakob or Jasment to learn more about your options for homes with potential income suites. Click the addresses of the 3 listings to view more details, location and photos.