Renovate Your Basement into a Profitable Income Suite

Real Estate Mark Goode 14 Jan

Turning Your Basement into a Legal Income Suite: What You Need to Know

With current interest rates and economic uncertainty, many Canadians are looking for ways to bring in extra income. One great option is putting your home equity to work by renovating your basement into a legal income suite. Using a secured credit line, such as a home equity line of credit (HELOC), can help you fund the upfront costs of transforming your space into a money-making asset.

If you’re considering this investment, here’s everything you need to know to get started:

1. Check Zoning Laws

Before diving into renovations, confirm whether your property is zoned to allow for a secondary suite. If it’s not, look into the possibility of rezoning. This step ensures your renovation can proceed without complications.

2. Understand Local Regulations

Income suite regulations vary depending on your city or province. Be sure to consult your municipality’s building department or website to learn about rules specific to your area. For example:

  • In Coquitlam: Suites cannot exceed 40% of the main house’s floor plan, and you must provide a designated parking spot.
  • In Toronto: Proposed reforms aim to make it easier to add secondary suites.
  • In Calgary: Recent zoning changes have made it simpler to add income suites.
  • In Montréal: Large renovation projects may require agreements with the city to contribute to affordable housing.

Research these regulations thoroughly to avoid setbacks and ensure compliance.

3. Address Insurance & Legal Needs

Adding a secondary suite means revisiting your homeowner’s insurance policy. Ensure your property will be fully covered, including the new income suite. It’s also important to create a formal tenant agreement if you’re renting out the space. In Ontario, landlords must use the standard lease agreement for all rental arrangements.

4. Plan the Suite Layout

Your income suite must meet specific requirements to be functional and code-compliant. Key considerations include:

  • Separate entrance, kitchen, bathroom, and living/sleeping areas.
  • Proper ventilation, soundproofing, and natural light.
  • Interlinked smoke detectors for the main home and suite.
  • Separate heating and ventilation systems.
  • Proper utility connections, drainage, and electrical setup.

Hiring professional builders, electricians, and plumbers ensures the suite meets building codes and avoids costly issues down the road. Check out construction-related businesses from the Orillia and District Construction Association.

5. Secure Necessary Permits

Before starting construction, draft blueprints and apply for the required building permits in your area. Even if your region doesn’t require a permit, obtaining one is crucial for ensuring your investment is protected and your suite is considered legal.
You’ll also need permits for plumbing, electrical, and gas work. Failing to secure these can result in delays or fines. Orillia’s building division includes a list of required permits and zoning which can be found here.

6. Schedule Inspections

As construction progresses, ensure you schedule required inspections to confirm the work complies with building codes, fire safety standards, and health regulations. Once the suite passes inspection, it will be officially approved for use.

7. Verify Licensing Requirements

In some cities, you may need a business license to rent out your suite. For instance, Vancouver requires a license for long-term rentals. However, if a family member will live in the suite, a license may not be necessary. Double-check with local authorities to confirm.

8. Take Advantage of Incentives

Renovating for a secondary suite comes with financial perks! Some programs include:

  • Multigenerational Home Renovation Tax Credit: Offers 15% of qualifying expenses (up to $50,000) for creating a secondary unit for family members.
  • First Nations Programs: Federal funding of up to $60,000 for adding affordable secondary suites, with increased amounts for remote or northern areas.
  • Ontario Regional Programs: Forgivable loans of $25,000–$50,000 are available, provided homeowners maintain ownership for 15 years.

Contact your local government or research online for details about programs in your area. The County of Simcoe covers frequently asked questions regarding secondary suites, learn more here.

Why Add an Income Suite?

Creating a legal income suite not only boosts your monthly cash flow but also increases your property’s value. Whether you use the additional income to pay down your mortgage or cover rising costs, this investment can provide long-term financial stability.

Before you begin, visit your local municipal office and consult professionals to ensure you have a full understanding of zoning, permits, and regulations. By following these steps, you’ll set yourself up for a smooth and successful renovation process—and a profitable new stream of income!

Ready to learn more about funding your renovation? Contact us today 705.326.8523 to discuss how to make your home equity work for you!

 

Refinancing Your Mortgage in 2025 with Mortgage Man DLC

Mortgage Tips Mark Goode 12 Dec

Refinancing Your Mortgage in 2025

Refinancing your mortgage in 2025 can be a smart financial move, and at Mortgage Man DLC, we’ve seen just how much it can benefit our clients! 🏡

While refinancing is often done at the end of your mortgage term to avoid penalties, the timing really depends on your goals. Whether it’s unlocking equity to fund renovations, consolidating debt, or taking advantage of lower rates, refinancing can offer endless possibilities.

Let’s break down how refinancing could work for you:

🔑 Get a Better Rate: With the Bank of Canada adjusting rates over the past months, now is an excellent time to refinance for better rates and lower monthly payments. Experts predict even more drops in 2025! Check out the list of 2025 rate announcement dates.

🔑 Consolidate Debt: If you have high-interest debt, refinancing could help roll everything into one payment—at a lower interest rate. Simplify your finances and save more in the long run!

🔑 Unlock Home Equity: Need funds for renovations, education, or a large purchase? Refinancing allows you to tap into your home’s equity to achieve your financial goals.

🔑 Change Your Mortgage Product: Refinance to adjust your mortgage terms. Lock in a lower fixed rate, switch to a variable rate, or adjust your payment schedule to suit your financial plans.

✨ Exciting Updates from the Government of Canada:

  • As of November 21, uninsured mortgages no longer require passing the stress test when switching lenders during renewal (as long as no extra funds are added).
  • Starting January 15, default-insured mortgages can refinance up to 90% of their value to fund secondary suites.

Refinancing in 2025 offers so much flexibility and opportunity. Want to know if it’s the right time for you?

Let’s chat about your options!
📞 Contact us today at 705.326.8523.

Obtaining a Mortgage When Separating from Your Spouse: Key Considerations

Mortgage Tips Mark Goode 18 Oct

Separation can be an emotionally and financially challenging time, particularly when it comes to dividing assets like your home. If you’re navigating the complexities of obtaining a mortgage while separating from your spouse, you’ll need to consider several important factors. Whether you’re looking to buy a new property or refinance the one you already own, here’s a guide to help you move forward with confidence.

1. Understand Your Financial Position

The first step in securing a mortgage post-separation is understanding your financial standing. This includes:

  • Credit Score: Your credit score will play a crucial role in mortgage approval. Ensure it’s in good shape by checking for errors and paying off any outstanding debts if possible. Check the Canada Services on how to find out what your credit score is or one of our mortgage agents can assist you.
  • Income: Lenders will review your income stability. Whether you’re employed or self-employed, having a reliable income stream will help you qualify for a mortgage.
  • Debt-to-Income Ratio: If you’re already carrying debt—such as spousal or child support obligations—lenders will factor this into their decision. The lower your debt-to-income ratio, the better your chances of getting approved. Check out how your debt-to-income is calculated by visiting the National Bank of Canada website.

2. Evaluate the Family Home

Deciding what to do with the family home can be tricky. Common options include:

  • Selling the Home: If neither spouse wants to keep the home, selling it and dividing the proceeds is one option. You can then use your portion for a down payment on a new property.
  • One Spouse Buys Out the Other: In some cases, one spouse may wish to keep the home and buy out the other’s share. This could require refinancing the existing mortgage to remove the other spouse’s name and adjust the loan terms.
  • Co-Ownership: Some couples opt to continue co-owning the property post-separation. This could be temporary or long-term, depending on personal circumstances.

3. Refinancing the Existing Mortgage

If you or your spouse wish to stay in the marital home, refinancing is likely required. Here are the key considerations:

  • Qualifying for Refinancing: The person staying in the home must qualify for a mortgage in their name alone. This will involve providing income verification, a solid credit history, and showing an ability to cover mortgage payments independently. We offer an excellent and simple pre-approval tool which will get you access to all premium tools to help plan your mortgage. Download My Mortgage Toolbox today.
  • Appraisal and Legal Process: Refinancing involves getting a home appraisal to determine its current market value. You’ll also need to go through legal channels to remove the other spouse’s name from the title. Mortgage Man DLC can assist with this during our pre-approval process.

4. Affording a New Mortgage Post-Separation

If you plan on buying a new home after the separation, affordability is essential. Here’s what to keep in mind:

  • Down Payment: Your down payment will likely come from your share of the proceeds if the family home is sold. However, you might also need to tap into other assets like savings or investments.
  • Mortgage Pre-Approval: Get pre-approved for a mortgage as soon as possible AND before you commit to buying a home. This will give you a clear understanding of your budget, and make the home-buying process smoother. Find out what you would qualify for with our handy app.
  • Future Financial Obligations: Don’t forget to consider future expenses like spousal or child support when budgeting for a new home. You’ll want to ensure you can comfortably manage all your financial obligations.

5. Seek Professional Guidance

Working with professionals such as mortgage brokers, lawyers, and financial planners can ease the process of securing a mortgage during a separation. Our knowledgeable mortgage agents have been assist clients just like you for years and can help you understand your options, find the best rates, and guide you through the approval process, contact us today 705.326.8523 or get started with our online application.

6. Timing is Everything

When you’re separating, timing can be crucial. If you’re able to amicably reach a separation agreement that details the division of assets, it will streamline the mortgage approval process. Lenders may require this agreement to see how your financial situation will change post-separation, especially if there are support obligations involved.

Conclusion

Obtaining a mortgage when separating from your spouse involves navigating complex financial and emotional terrain. By taking the time to assess your financial position, considering your options for the family home, and seeking expert advice, you’ll be better equipped to make decisions that protect your financial future. As with any major financial decision, having a well-informed strategy in place can make all the difference in ensuring a smoother transition to your new life. Call us today 705.326.8523 for a free no-obligation quote and we will happily assist you with the process.

Unlocking the Advantages of Rate Holds for Your Mortgage

Mortgage Tips Mark Goode 22 Aug

Rate Holds with Mortgage Man DLC

Embarking on the journey to purchase your first home is an incredibly exciting and rewarding experience!

To make the mortgage process smoother, one effective step is to get pre-approved for your mortgage. Pre-approval doesn’t lock you into a specific lender, but it does secure your interest rate for 90 to 120 days, protecting you if rates increase while you’re still house hunting.

Here are some key benefits of mortgage rate holds:

Protection Against Rate Increases: A rate hold guarantees your interest rate for a set period, usually up to 120 days, shielding you from potential rate hikes. Plus, if rates drop during this time, you can still benefit from the lower rate!

Better Financial Planning: Knowing your exact interest rate allows for more precise financial planning and budgeting. It provides clarity on your monthly mortgage payments, helping you target the right price range for your home and ensuring long-term financial stability.

Time for Decision Making: A rate hold offers peace of mind, giving you the necessary time to find the perfect home. It also allows you to compare different mortgage options without the pressure of changing rates, which is especially helpful when evaluating various lenders or mortgage products.

Stress Reduction: Rate holds reduce the stress associated with fluctuating rates and market uncertainties. After the recent market volatility, having a secured rate can ease the pressure of home shopping. You can take your time finding the right home, and if your rate hold expires, renewing it is simple!

Securing a Competitive Rate: While significant rate increases are not expected in the near future, securing a rate hold can still save you money by locking in a favorable rate should market conditions change.

Overall, rate holds provide peace of mind, financial security, and the ability to make informed decisions when entering a mortgage agreement. They are particularly valuable in fluctuating rate environments or when delays in finalizing your mortgage are anticipated. Interested in purchasing a home or learning more about rate holds and the mortgage process? Reach out to Mortgage Man DLC today 705.326.8523, we are here to assist you through the mortgage process.

 

Source: DLC Marketing Team

Switching from a Variable Rate to a Fixed Rate Mortgage

Mortgage Tips Mark Goode 14 Jun

With the anticipation of rates going down, some homeowners may be considering switching from a variable-rate mortgage to a fixed-rate mortgage to lock in their next term.

Stability in Payments: With a fixed-rate mortgage, your monthly payments remain consistent throughout the life of the loan. This predictability makes budgeting easier and shields you from fluctuations in interest rates that could otherwise increase your payments with a variable-rate mortgage.

Protection Against Interest Rate Increases: One of the main reasons to switch to a fixed-rate mortgage is to ensure you are protected from rising interest rates. If interest rates rise, your mortgage rate and monthly payments remain unaffected, providing financial security and peace of mind.

Long-Term Planning: Fixed-rate mortgages are ideal for long-term planning and financial stability. You can accurately forecast your housing expenses over the entire loan term, making it easier to manage your overall budget and financial goals.

Risk Management: By locking in a fixed interest rate, you mitigate the risk of future interest rate hikes, which could significantly increase your borrowing costs with a variable-rate mortgage. This strategy can provide financial protection and reduce uncertainty.

Potential Savings: In certain economic environments, fixed-rate mortgages may offer lower interest rates compared to variable-rate mortgages. By refinancing to a fixed-rate loan when rates are favorable, you could potentially secure a lower overall interest rate and save money over the life of the loan.

Easier Financial Planning: Fixed-rate mortgages simplify financial planning by eliminating the need to anticipate and adapt to changes in interest rates. You can confidently plan for other financial goals and expenditures without the uncertainty of fluctuating mortgage payments.

Overall, transitioning from a variable-rate to a fixed-rate mortgage offers stability, protection, and peace of mind, making it a favorable option for many homeowners, particularly those seeking long-term financial security. To learn more about variable vs fixed rates, check out this quick video here https://markgoode.ca/home-purchase/fixed-rate-vs-variable-rate/

Contact our Mortgage Man DLC team to discuss the options that best suit your budget and situation, we look forward to assisting you.

Source: DLC Marketing Team OurHouse