Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Does rental income from an ADU help me qualify for a mortgage?

There is no ADU category in Saskatchewan; the equivalent here is a legal secondary suite. Yes, a lender can count a portion of that rental income toward mortgage qualification once City of Saskatoon permits confirm the suite is legal, following CMHC lending guidelines for how the income is added.

Permit status is what separates a suite a lender will underwrite from one it will not. The City of Saskatoon inspects for a separate entrance in many cases, proper egress, ceiling height and fire separation, and a lender treats an unpermitted basement apartment as unfinished living space rather than income.

Beyond legality, the amount counted depends on the lender's own policy and where your file lands against a 39 percent gross debt service ratio and a 44 percent total debt service ratio, with a minimum credit score of 600 required on an insured mortgage. Confirm the specifics with a mortgage broker before you write an offer.

Public listings and online tools describe square footage, not permit status, which is exactly where a hand-reviewed look at the property earns its keep. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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