To watch the video click above or, if you're a reader, throw on your glasses grab a tea and learn about the CORRECT home to buy first which will set you up to be years ahead of your peers 🤓Here
Make THIS Your First House Purchase
Dated: November 16 2022
Views: 627
To watch the video click above or, if you're a reader, throw on your glasses grab a tea and learn about the CORRECT home to buy first which will set you up to be years ahead of your peers 🤓
Here we go...
Here’s a little tip to help you qualify for a home purchase. Did you know that you can use the rental income from a suite as qualifying income towards your mortgage payment? That’s right! If the house you’re trying to buy has a suite you’re probably in a position to use the potential rents from that suite to supplement your income in your mortgage application for that purchase.
Now it’s important to note that different lenders will have different rules when using this income but, generally speaking, 50% of the market rent of a suite can be used for your purchase. So, using a very simple example, with round numbers, if it costs $500 a month to cover a $100K in a mortgage and a suite rents out for $1000 a month that means, using 50% of that $1000 rental suite income means you qualify for an extra $100K in purchasing power than you might otherwise have been able to qualify for. Of course you will still require the down payment for the purchase.
This a a great hack to help buyers who, for affordability reasons, might be looking at a condo or townhome instead be able to afford a single family detached home. The great thing about this program is that although the bank allows you to push the envelope on what you can qualify for, because only 50% of the rental amount collected is used in the mortgage application, you will actually be in a much more stress-free financial situation than compared to buying a slightly cheaper condo or townhouse option as your net expense will likely be lower.
As I already mentioned, different lenders have different guidelines on using suite incomes to qualify for a purchase so make sure you’re talking to an experienced mortgage professional for advice on your situation but if you have any more questions about this topic, or anything else real estate related, reach out to me any time and I’d be happy to help.
Matt Ranger Personal Real Estate Corporation
I am thankful to have had the good fortune of being born and raised in Kelowna, and witness this great city evolve from a sleepy town known for apples and beaches, into a growing metropolis. My ventu....
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