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

Is buying a two-family home a good first purchase?

A two-family home, what Saskatoon typically lists as a legal duplex or a house with a permitted secondary suite, can be a strong first purchase because rental income from the second unit helps qualify for and carry the mortgage, provided the suite is legally permitted through the City of Saskatoon.

The permit is the whole question. A lender will only count secondary suite income toward your mortgage qualification if the City of Saskatoon has issued a building permit for it, covering egress windows, ceiling height and fire separation, so a beautifully finished but unpermitted suite adds close to nothing on paper even though it looks identical to a legal one. Confirm permit status before you make an offer, not after.

Financing a two-family property still follows the standard residential rules, 5 percent down on the first $500,000 of the price and 10 percent above that, provided you plan to live in one unit, and mortgage default insurance still applies below 20 percent down.

Being a landlord alongside being a first-time buyer adds real responsibility, from tenant selection to maintenance, so weigh that against the financial upside before deciding it is the right first step for you.

Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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