December 2015 Real Estate Report For Kelowna and Central Okanagan

Central Okanagan Real Estate Report for Kelowna, West Kelowna, Westbank, Peachland and Lake Country:

Dependably Yours,

Jason Neumann RE/MAX Kelowna

October 2015 Real Estate Report For Kelowna and Central Okanagan

Below is a Central Okanagan Real Estate October 2015 Marketshare Report for the cities of: Peachland, West Kelowna, Westbank, Kelowna and Lake Country.

Dependably Yours,

Jason Neumann

CMHC To Allow 100% Rental Income Allowances For Legal Suites

In a bold move Canadian underwriter, CMHC (Canadian Mortgage and Housing Corporation) has announced it will now allow 100% of rental income generated by legally registered suites. Here is the initial breakdown on using this type of rental income:

• The property must be owner-occupied.

• The property being insured can have only two units (i.e., a duplex or a single home with a legal secondary suite). 

• Rental income cannot be used if the suite is “illegal/non-conforming” but “legal non-conforming” is okay. (Non-conforming means that the suite was grandfathered in before zoning/regulations restricted such units. You can check with the city to confirm if a suite is legal.)

• The suite must be self-contained with its own entrance.

• Property taxes and heat must be factored into the borrower’s debt ratios (which is currently not the case when using rent from legal secondary suites).

• For existing units, there must be two-year history of rental income from the suite. The maximum rental income allowed for qualification is a two-year average of the unit’s rent.

• For new units, a market rent appraisal can be accepted if an appropriate vacancy rate has been applied to the estimated rental income.

• Mortgage applicants must “demonstrate a strong history of managing credit” with a minimum credit score of 680.

For more on this new CMHC initiative please visit: Canadian Mortgage Trends

If you are looking for a referral to a terrific local Okanagan based Mortgage Broker please call or text Jason Neumann of RE/MAX Kelowna at 250.808.7700 

Dependably Yours,

Jason Neumann