How Mortgage Helpers Help

(November 11, 2011 )

With house prices continuing to rise in the Greater Vancouver area, more and more people find it harder to purchase a house of their own.  Though condos and townhouses are the more affordable option for homeowners, many families and couples still prefer to live in a house.  So, how can you buy a house if you can't afford the mortgage payments?  Many people turn to "mortgage helpers".

The term mortgage helpers means having a separate suite in the house you can rent out.  The rental income will help cover part of your mortgage payments, or other household expenses.  Banks and lenders recognize separate suites as potential rental income, and will approve larger mortgages to homeowners based on the estimated market rent.  Be sure to check with your realtor to ensure that any and all suites are "legal", as lenders will not recognize any illegal accommodations when approving a mortgage. 

* Be advised that all information provided is for illustrations only, and you should consult a financial advisor when purchasing any home with separate rental accommodations.