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

Does rental income help a buyer qualify for a mortgage on a Saskatoon multi-family?

Rental income can help a buyer qualify, but Canada Mortgage and Housing Corporation and most lenders only count a portion of the projected or actual rent toward qualifying income, not the full amount, and the exact percentage depends on whether you will live in the property or hold it purely as an investment.

For an owner-occupied purchase with a legal secondary suite, lenders and CMHC generally treat that arrangement more favourably than a pure investment purchase, since you are living in part of the property and the suite income offsets your own housing cost. The suite still has to be a permitted, legal unit under City of Saskatoon rules for any of that income to count.

A pure rental purchase with no owner-occupancy is underwritten differently, and minimum down payment requirements are higher than the standard 5 percent to $500,000 then 10 percent above that applies to an owner-occupied purchase. Confirm with your lender early which category your purchase falls into, since it changes both your qualifying income and your required down payment.

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