Quote:
Originally Posted by Special K
^^^ would your payments be okay without the rental income downstairs? I think banks are pretty strict on rental suites now too.
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Yeah, I could easily carry the payments without rental income to the point that we've considered not renting out the suites at all (we won't do that though as we don't need the extra space right now)
We didn't declare any rental income in our application either, TD said they'd only consider 50% of it so it would basically be a rounding error for our total income. In any case, I've always treated my suite(s) as bonus money since they've been unauthorised so I only borrow what I can afford to comfortably pay on my own.
This is where I think the stress test kinda makes things weird - if your household income is 80-120k then the test makes tonnes of sense. Your leftover disposable income needs to pay for stuff like cars, clothes, utilities, FOOD etc. A tripling of interest rates for this group of people is REALLY, REALLY BAD and will result in a lot of more quality listings on the CL Good Buys thread ("Must sell, financial situation has changed, make me an offer")
When you're high income the amount of leftover disposable income that the stress test creates can be pretty big and a tripling of interest rates is not the end of the world (but it sucks). But still, it's a good thing - we need to slow down the housing market - I just wish I could take more advantage of the financial markets.