I was trying to help a young couple buy their first house when the market started going up, up and away!
Many first-time buyers require a 20% down payment. Even with mortgage rates at an all-time low, first--time buyers are having a difficult time.
One can still purchase with a lesser down payment, but many buyers are looking to have a second supplemental unit they can rent to help with mortgage payments.
This can be tricky. Most lenders require the second unit to be legal in order to apply any of that income when qualifying for the mortgage.
Properties with a second kitchen and bath in the basement, even those with a separate entrance, will not necessarily qualify as a legal second unit.
To be legal, the second unit must meet certain criteria and be registered with the Municipality. The home owner is then provided with a Certificate of Registration, which also increases the value of the property.
