What is an Income Suite?
It is a secondary dwelling that is inside or on your homes property which includes basement suites or garden suites. A secondary suite has a separate Kitchen, laundry, sleeping, bathroom, and entrance area from those that the primary occupants use.
Benefits of an Income Suite
With new buyers looking for affordable housing options in the Edmonton Area, many homeowners are using the extra space in their homes to set up income suites. Whether it’s a garden suite, a basement suite, or an in-law suite, using the extra space in your home has numerous benefits:
- Generates passive income with long term tenants
- Income potential with short term rentals such as AirBNB
- Increase monthly cashflow
- Pay off your mortgage faster
The benefits of suites extend past income potential to caring for your family:
- Separate living quarters for adult children in post-secondary or before establishing their own residence
- Designated living areas for multi-generational living
- Suite for aging family members
Is an Income Suite Right for You?
Setting up an income suite is a great way to help pay your mortgage, but it’s also a great way to get approved for a mortgage too. The Canada Mortgage and Housing Corporation (CMHC) has introduced new regulations that allows 100% of rental income to be factored into your mortgage qualification, the percentage that individuals lenders will allow may vary. This means that the income from this suite will count towards your total income, increasing the amount of mortgage you may qualify for.