Basement unit's often low-ceilinged spaces have had a less-than-stellar reputation, and in some BC municipalities, are deemed illegal. That’s about to change.The basement suite as a revenue stream has been a Vancouver region staple for decades, the “mortgage helper” that debt-burdened buyers have long relied upon.
It’s part of the Homes for People plan that’s underway and expected to get going by the end of October. The province will introduce legislation to allow up to four units on so-called “single-family” lots, which, in Vancouver, are already mostly zoned forElsewhere in the province, however, the four-unit allowance will have a greater impact.
Nobody knows yet how “below market” will be defined, but it’s typically 20% less than market rate as defined by CMHC survey data. A rental registry, used in other parts of the world, requires landlords to register their properties and ensure they are livable. At the very least, a registry would offer insight into how renters are living, says Yan.
He says every financial institution has its own policy, so he can only speak about Vancity. In the Vancouver region, the demand for rental is so high that it’s a reliable source of income for a homeowner. That said, they don’t use 100% of the rental unit as an offset, but 90%, because there will be the occasional month when it is vacant.
The more rental units, the more borrowing power, such as a secondary suite and a laneway house. The other benefit of a laneway house is that when the couple is ready for retirement, they could opt to live in the smaller house and rent out their main house.