Knowledge centre
No. OSFI’s rental-mortgage clarification concerns how federally regulated institutions classify exposures for capital purposes. OSFI has said it does not change how rental income is used to qualify a borrower under Guideline B-20.
For income earned after 2023, federal tax rules can deny expense and capital-cost-allowance deductions attributable to a non-compliant short-term rental for the period of non-compliance.
Rental income is not handled by one universal percentage. Many A lenders use conservative add-back or offset worksheets; alternative/B lenders may recognize more rental cash flow; MIC and private decisions can place more weight on equity, property and the exit strategy.
For an eligible insured two-to-four-unit non-owner-occupied property, CMHC describes gross-rent and net-rental-income approaches. The result depends on the method, expenses and the complete application—not rent alone.
Potentially. Under CMHC’s insured-mortgage approach, up to 100% of gross rental income may be considered for an owner-occupied two-unit property, subject to the insurer’s and lender’s full requirements.
No. CMHC rental-income methods apply when CMHC mortgage-insurance requirements are relevant. They are not a universal formula that every conventional A lender, alternative/B lender, MIC or private lender must use.
Changing all or part of a home from personal use to income-producing use can create a deemed disposition at fair market value. Elections may be available in some cases, but they have conditions and tax consequences.
Potentially. For dispositions after 2022, profit on a residential property held for fewer than 365 consecutive days is generally deemed business income unless a legislated life-event exception applies.
Yes. The federal prohibition on purchases of residential property by non-Canadians was extended and is scheduled to remain in force until January 1, 2027, subject to the Act, regulations and exceptions.
The FCAC guideline sets expectations for federally regulated financial institutions supporting eligible consumers with principal-residence mortgages who are at risk because of exceptional circumstances. It is not a universal relief program for every mortgage.