Garden suites (carriage homes, laneway suites) are secondary dwellings built on an existing residential property, often in the backyard or above a garage. They provide extra living space and, in many cases, serve as rental units. Here’s how they can help in terms of your mortgage.

Keep reading or watch my video for more details:

How Lenders View Rental Income

From a mortgage perspective, rental income is a valuable tool. Once the garden suite is completed, lenders will typically allow you to use a portion of that rental income, often 50% or more, toward your qualifying income. This can make it easier to secure financing for your next property purchase or a refinance.

Financing Options After Building

Homeowners who add a laneway suite may choose to:

• Refinance their property to pull out equity once the value has increased.

• Use the combined income from their main home and the rental unit to qualify for another property.

• Convert the entire property, including the suite, into a rental investment.

Why Planning Ahead Matters

Every lender has slightly different rules about how much rental income can be used for qualification. Speaking to a mortgage broker early ensures that you’re structuring your plans in a way that supports your long-term financial goals.

Whether you are preparing to buy your first home or thinking about building a garden suite, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.