Short answer
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.
Why this question matters
A buyer needs income from a basement unit to qualify, but assumes that advertised rent can simply be added dollar-for-dollar to employment income.
What the official rule or guidance says
CMHC’s debt-service guidance permits up to 100% of gross rental income for an owner-occupied property with two units. The application must still satisfy the relevant debt-service, credit, property, down-payment and documentation requirements.
What this does not mean
“Up to” is not an automatic entitlement. The lender may require a lease, market-rent appraisal, proof the unit is acceptable, or different treatment of expenses. Municipal legality, zoning and fire requirements are separate questions.
A practical Ontario example
Illustration only: A buyer plans to occupy the main floor and rent the lower unit for $1,800. The lender does not merely accept the listing description; it may validate market rent and the property configuration before deciding what amount can be used.
Practical next steps
Ask the broker to confirm the exact insurer and lender method before making the offer. Keep a financing condition where possible, and verify the unit with the municipality, insurer and lawyer rather than relying only on the seller’s description.
Questions to ask before relying on the answer
- Is this an insurer, tax, legal, regulator or individual lender rule?
- Does it apply to an insured, insurable or uninsurable mortgage?
- How will the lender document and calculate the rent on this exact property?
- Which facts are confirmed, and which are still assumptions?
- What is the lowest-cost workable path through A, alternative/B, MIC or private lending?
Rajiv’s broker perspective
Rental files should be tested, not guessed. I would separate the legal and tax questions from the mortgage calculation, prepare one clean property schedule and then compare suitable lender policies. A strong result is not simply the largest approval—it is a mortgage the client can carry through vacancy, repairs, renewal and a realistic exit.
Related: Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Want the rental file tested before you make a decision?
Bring the property numbers, current mortgages and income documents. Rajiv can compare the practical A, alternative/B, MIC and private paths and identify which questions need an accountant or lawyer.