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Mortgage News 2022

What is a rental offset, and why is it important when purchasing investment properties?

5/10/2021

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Rental offset is the percentage of rental income a lender will use to qualify you for a mortgage. Usually, this amount gets deducted from the borrower’s liabilities to help reduce the total debt service ratio.

Working with a mortgage broker ensures you maximize your chances of being approved by using a favourable rental offset rule whether you are buying your primary home and own other rental properties or building your investment portfolio. 

While some lenders only use a 50% rental offset, others will use up to 100% of the rental income you receive to help you obtain adequate mortgage financing. 


If you are purchasing a second home or a property with up to two units, for example, CMHC currently allows up to 100% of the rental income, if eligible, to get added to gross annual income. It also allows the exclusion of property taxes and heat. 

Using favourable rental offsets is critical in qualifying for a mortgage and getting the best interest rate. 

For more information, please call or write. 

You can also visit CMHC  Rental Offsets.

Sarah A. Colucci
Mortgage Agent, Lic. M140000929
Mortgage Edge, Broker 10680 
Direct: (647) 773-4849
Email: sarah.colucci@mortgageedge.ca

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Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
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Email: scolucci@sherwoodmortgagegroup.com
Picture
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?