Suite Income to Qualify for More
Using Secondary Suite Income to Qualify for More Mortgage Financing
With Vancouver’s real estate market leading the country in average single family home prices, many buyers today are looking for homes with rental suites to minimize their overall monthly housing obligations. Many of these purchasers have good sized down payments, but they do require the use of the rental suite income to qualify for the mortgage amount they need to be able to make the purchase. In many cases, a suitable home can be found, where the rental income of $1200 per month can effectively reduce the total monthly mortgage obligation down to $2200 per month. Unfortunately, often what the purchaser hears back from their Bank and/or the high ratio insurance provider (CMHC or Genworth) is that they do not consider secondary or rental suite income for qualification purposes in that way, and as a result this impacts the mortgage approval amount. Generally, 50% of the rental or secondary suite income is added to the purchaser’s employment income, and the purchasers are then asked to debt service the total mortgage payments using normal credit guidelines. In effect, only a small percentage of the rental income is considered for qualification purposes. What if you could provide a solution to this purchaser’s problem?......... Provide access to lenders that recognize the economic reality of secondary suite income and use it for qualification purposes. For a reccomendation of a good Mortgage Broker please don't hesitate to contact me any time.
Prudential Sussex Realty
Committed Service. Real Estate Sales.
Real Estate North Vancouver. Real Estate West Vancouver. Real Estate Downtown Vancouver. Real Estate in the Lower Mainland. Buy and Sell Real Estate. Specialized in Real Estate. Dave Valente