Homes with suites

Homes with Secondary Suites (aka “Mortgage Helper”)

Homes with Secondary Suites, also known as “Homes with Mortgage Helpers” or “Homes with 2 kitchens” offer an additional self-contained dwelling unit within a single-family home, complete with its own entrance, kitchen, bathroom, and sleeping accommodations.
Houses with secondary suites are desired by practically everyone:

• Detached home buyers welcome the additional income from the secondary suite. Moreover, if the suite is legal, that income is considered when applying for a mortgage, and can allow the buyer to qualify for a larger mortgage. The suite really is a mortgage helper!
• Sellers of a house with a secondary suite will find that their home will sell faster and for more money than a similar home without the suite.
• Governments favour legal suites because they can help alleviate severe housing shortages in Greater Vancouver. The BC government is offering an incentive of up to $40,000 to homeowners to add a suite to their home!

Cities in British Columbia suffer the highest cost of living anywhere in Canada. Almost one in six homeowners in Vancouver and Surrey rent out a secondary suite, laneway house or a half-duplex, according to Statistics Canada. By contrast, fewer than one percent of homeowners in Ontario rent out secondary suites!

Legal or Not Legal, that is the Question!

The legal status of a suite is crucial when purchasing a home with a mortgage helper. Legal suites adhere to building permits, meeting zoning, health, safety, electrical, and fire standards. Authorized suites were compliant at one point but may not be currently, and are typically grandfathered in. Non-conforming or “illegal”; suites lack city approval, construction permits, and compliance with current codes. Buyers need to be aware that banks will consider the income from legal or authorized suites for mortgage qualification, but generally not from illegal ones.

Sometimes, an illegal suite can be renovated to become a legal suite. Contact us if you’d like to discuss this possibility.

The Residential Tenancy Act

Landlords in British Columbia are legally required to act in accordance with the Residential Tenancy Act (RTA), which protects the rights of tenants. Failure to do so can result in very substantial penalties. Here are some of the major considerations:

1. Rent controls. The Residential Tenancy Board (RTB) sets the maximum percentage rent increase that landlords may apply annually. Note that rent controls only apply once a tenancy is in place; a landlord is free to ask any amount they wish for a vacant suite. Rents have increased enormously over the past few decades, at a pace far exceeding the percentages allowed by rent controls. As a consequence, tenants who have occupied a property for a long time are frequently paying rents far below market. You can find some information on the going rental rates at Rentometer.com. If you’d like a full report, please contact us: we have a paid subscription to the Pro version, and would be delighted to run a report for you!

2. Evictions. The RTB only allows evictions for a very narrow set of reasons. A landlord cannot simply evict a tenant in favour of finding a new tenant because their rent is too low!

3. Tenant Rights. The RTB recognizes that the rental suite is someone’s home, and gives them strong protections against landlord intrusion. Choose your tenants wisely because friction between the tenant and the landlord is not grounds for eviction!

$40,000 Homeowner Incentive to build Additional Suites

Yes, you read that right: the BC Government has created the Secondary Suite Incentive Program to help homeowners to create affordable housing in their community. Homeowners who qualify will receive up to 50% of the cost of renovations, to a maximum of $40,000!

We can help you find Homes with Mortgage Helpers. We have added the capability to find houses with mortgage helpers to our website.
Select your city of interest from the map , and then click on Homes with Suites to see all houses with 2 or more kitchens.

We have considerable expertise in analyzing the investment potential of properties, so again, don’t hesitate to reach out if you’re thinking of buying an investment property.

Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.