Buying a home with an income suite can have several advantages, including the potential to increase your purchasing power.

First, having an income suite can generate rental income that can help you qualify for a larger mortgage. When you apply for a mortgage, lenders will consider your debt-to-income ratio, which is the percentage of your monthly income that goes toward debt payments. Rental income from an income suite can help lower your debt-to-income ratio, which can increase your purchasing power.

Additionally, the rental income from an income suite can help you offset the cost of your mortgage payments, property taxes, and other expenses related to owning a home. This can make homeownership more affordable and allow you to purchase a larger or more expensive home than you might be able to otherwise.

However, it’s important to note that buying a home with an income suite also comes with additional responsibilities and considerations. You’ll need to be comfortable being a landlord and managing tenants, and you’ll need to make sure the income suite meets all local zoning and safety requirements. You’ll also want to factor in any additional maintenance and upkeep costs associated with owning a rental property.

Overall, buying a home with an income suite can be a smart financial decision, but it’s important to carefully consider the pros and cons and make sure it aligns with your long-term goals and financial situation.

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Is your renewal coming up in the next 4-6 months?

Did you know you can start shopping for better Mortgage options months in advance.

Borrowers typically end up paying more in interest as a result of not searching for better options at the time of Mortgage renewal.

DM for more details.

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The First Home Savings Account (FHSA) is a new type of registered account announced by the federal government in 2022.

An FHSA is designed to help you save for your first home, tax-free.

Like a registered retirement savings plan (RRSP), contributions to an FHSA will be tax deductible.

Like a tax-free savings account (TFSA), any investment income in your FHSA is non-taxable while it’s in your account.

Pay no taxes on your withdrawals when you use your FHSA towards the purchase of a qualifying home.

$8,000 annual contribution limit

$40,000 lifetime contribution limit

You need to be a Canadian resident and you’ve reached the age of majority in your province or territory

An eligible first-time homebuyer who hasn’t lived in a qualifying home in the current or past 4 calendar years

A Canadian resident and a first-time homebuyer at the time of the withdrawal

You have an agreement to buy or build a qualifying home

You intend to occupy the home as your principal residence within 1 year of acquiring the home