A lender approves the property as much as the borrower. Building type, condition and intended use narrow down which lenders can even take the file, sometimes before anyone looks at your income.
What the lender will check
Municipal zoning, whether the second unit conforms, and who is going to live in it. A non-conforming unit cuts the list of lenders sharply, even when the arrangement works well for your family.
Look at the whole budget
The mortgage payment is just one piece. Municipal and school taxes, insurance, heating and upkeep pile on top, and many lenders want to see a reserve still in your account after closing.
Documents to gather
What the lender will ask for.
How the property is used
Type of building
Appraisal and comparables
Income or leases
Down payment or equity
Lenders that qualify
Frequently asked
Does the second unit count as rental income?+
Only if the unit is legal and its use is documented. When a family member lives there with no lease, most lenders credit nothing. That changes the amount you qualify for, so confirm conformity before you make an offer.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Bring them together before the offer and a five-day financing condition can work. After the offer, they add weeks.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
