Knowledge centre
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.
A federally regulated lender cannot make its optional mortgage life insurance a condition of mortgage approval. It must disclose the cost, obtain express consent and provide cancellation information.
A collateral charge may secure more than the mortgage. To remove or transfer it, other loans or credit lines covered by the charge may need to be repaid or moved, and legal work may be required.
Federally regulated lenders following the mortgage prepayment information code provide annual information about available privileges, maturity and how to estimate charges.
Federally regulated institutions must explain how the prepayment charge is calculated, including the process or formula and the information needed to estimate it.