These days, many people look for creative ways to qualify for their mortgage, and one popular strategy is to buy a home with a legal basement suite. Whether it’s a new home or an existing property, having a legal suite can make a big difference when it comes to qualifying for a mortgage and improving your financial health.

Using Rental Income to Help You Qualify

One of the biggest benefits of having a legal basement suite is that you can use rental income to help qualify for a mortgage. If you have a suite that is legal and up to code, lenders will allow you to use a portion of the rental income to boost your mortgage qualification. Typically, you can use 50% of the rental income to help with your application.

For example, if you expect to rent out the basement suite for $1,000 a month, you can use $500 of that income to qualify for the mortgage. This can be an excellent way to stretch your buying power and make it easier to afford the home you want.

Financial Benefits of a Legal Basement Suite

Beyond helping you qualify, having a legal basement suite can also significantly improve your financial health. By renting out the suite, someone else is helping to subsidize your mortgage payments. This allows you to pay off your mortgage faster and reduce your overall housing costs.

Another major benefit is that a legal suite can increase the value of your property. Having an income-generating rental unit adds long-term value and makes your home more attractive to future buyers, giving you a competitive edge in the real estate market.

Why It’s Important to Have a Legal Basement Suite

It’s crucial that your basement suite meets all the requirements set by the city. This includes having a separate entrance, a separate furnace, large enough windows (in case of fire), and meeting any other specific codes or regulations your city requires.

A legal basement suite not only helps you avoid potential fines or issues in the future, but also ensures the safety of your tenants and increases the suite’s marketability.

Get Connected with Experts

If you’re considering buying a home with a basement suite or want to legalize an existing suite, it’s important to work with the right people. I’m happy to connect you with Realtors who specialize in properties with legal suites, as well as other experts who can help you navigate the process.

If you’re looking to get pre-approved for a mortgage to buy a property 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’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.