CMHC Mortgage Regulations to Restrict Real Estate Investment
Filed Under Main Content · Tagged: Borrowers, Cmhc Mortgage, Debt Service, Household Income, Invest, Kicker, Kitchener Waterloo, Mortgage Investment, Mortgage Regulations, People, Real Estate Investment, Real Estate Investment Properties, Rental Property, Waterloo Real Estate
Kitchener Waterloo Real Estate Investment Properties- Currently when you buy a rental property, CMHC will allow you to use a 80% rental offset, which means that they used to take 80% of the gross rental income that the income property generated, and subtract that from the borrowers total debt, to establish the total debt service (TDS) ratio.
What that means is that you don’t have to have the household income to cover 100% of the value of the rental property, like you do with a home you live in, because the bank will let you offset the debt using 80% of the revenue the rental produces (does that make sense?).
They’re changing this amount to 50%, which makes it much tougher for people to qualify for investment properties, but the real kicker is that…
