MORTGAGE BROKERS HAVE SOLUTIONS

Canada’s mortgage stress test has made qualifying much harder — especially for buyers with strong credit and a solid down payment but lower income. Years ago, a 20% down payment could offset weaker debt ratios. Today, even that isn’t enough.

So what can you do if you have good credit, a solid down payment, but your income isn’t high enough to qualify?

Here’s the solution: buy a home with rental income built in.

If you buy a property with a friend or roommate, you cannot use “roommate rent” as income unless it’s a legal rental unit. But there are plenty of options that DO allow rental income to be counted:

✔️ legal basement suites

✔️ duplexes

✔️ properties with a legal secondary suite

✔️ garage lofts / coach homes

As long as the property is zoned for a legal rental unit, lenders may allow **50% to 85%** of that rental income to be added to your qualifying income — dramatically increasing what you can afford.

What lenders look for in a legal suite:

✔️ separate entrance

✔️ dedicated kitchen

✔️ dedicated bathroom

✔️ sometimes a separate hot water tank

✔️ zoning and permits supporting rental use

Not every lender uses the same rules, and percentages vary widely, which is why working with a mortgage broker is so important. We know which lenders accept more rental income, which lenders allow “add-back” vs “offset,” and how to structure your file to maximize your approval.

💬 Final Thought

Buying a home with a legal suite can turn a “no” into a “yes.” Whether you’re dealing with the stress test, low income, or high market prices, rental income can make the difference.

If you want to explore properties that could qualify, reach out — The Frontline Mortgage Group can guide you through the rules and get you into a home faster than you expect.