VANCOUVER - Buying a house in the hot housing markets of Vancouver or Toronto is only possible for some homebuyers if the house includes a suite they can rent out.
Right now, banks take the income from that suite into account when handing out mortgages, but soon, that will change.
On April 19, new rules will come into effect that will make it harder for homebuyers to take advantage of that income.
Banks will no longer allow the rent to off-set mortgage payments, making it tougher for homebuyers to use the rental income to qualify for a higher mortgage.
The Canada Mortgage and Housing Corporation says the change is needed to curb property speculation.
But Vancouver mortgage agent Mike Averbach says putting a renter in the basement isn't speculative for most homebuyers -- it's necessary.
