Here are the CMHC rules for detached houses:
- The property must be owner-occupied.
- The property being insured can have only two units (i.e., a duplex or a single home with a legal secondary suite).
- Rental income cannot be used if the suite is "illegal/non-conforming" but "legal non-conforming" is okay. (Non-conforming means that the suite was grandfathered in before zoning/regulations restricted such units. You can check with the city to confirm if a suite is legal.)
- The suite must be self-contained with its own entrance.
- For existing units, there must be two-year history of rental income from the suite. The maximum rental income allowed for qualification is a two-year average of the unit's rent.
- For new units, a market rent appraisal can be accepted if an appropriate vacancy rate has been applied to the estimated rental income.
- Mortgage applicants must "demonstrate a strong history of managing credit" with a minimum credit score of 680.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792
Fax: (778) 484-5252
506 Doyle Avenue
Kelowna, BC V1Y 6V8