Requirement for Owner Occupied?

[RascalHoudi]

Hi folks. Really enjoying what I see here and looking forward to attending my first REIN workshop in Toronto on March 14. Should be the start of a fantastic journey!



One of the options I am considering for my first purchase will be a unit in town where I can enjoy reliable high speed connection which is hard to get from my rural home location. I work from home with my day job, so that is why this is an issue for me.



I'm thinking that a nice fit would be a duplex where I could rent out on unit, and keep the other for myself perhaps renting out a room or two as well. I would keep a room as my office and expect to use it perhaps 2-3 days per week.



Since this type of setup would have me (the owner) actually occupying part of the property, I was just wondering what the interpretation is for CMHC's owner occupied requirement for a 5% down? This would be in the Oshawa area if that has any bearing on it.



Since myself and my wife do already share a priniciple residence, I'm fully expecting that this would NOT qualify- but I'd be foolish not to check it out. Does anybody have experience with a similar situation?

 

[GaryMcGowan]

I would get in touch with a mortgage broker who specializes in Investment properties. The mortgage broker will be able to look at your current situation and recommend the best way to move forward.

Once you have a clear plan on how to finance the property then it would be wise to work with Realtor who also specializes in Investment properties.

I can recommend a couple of mortgage brokers if you would like.

 

[Thomas Beyer]

[quote user=RascalHoudi]I was just wondering what the interpretation is for CMHC's owner occupied requirement for a 5% down?
10% down: Up to a 4-plex, with you living in one of the units



5% down for single family home or duplex.



Details here: http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/hopr/hopr_001.cfm

 

[markl]

As Gary recommended a mortgage broker who can walk you through your options.



You can do 5% down on 1 - 2 units.

You can do do 10% on 3 - 4 Units



Why Oshawa? If you want to check out Hamilton let me know



Regards,

 

[Thomas Beyer]

[quote user=markl]You can do 5% down on 1 - 2 units.

You can do do 10% on 3 - 4 Units


Indeed, Mark, indeed. I learn s.th. every day. Details here: http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/hopr/hopr_001.cfm

 

[JamDuq]

(Formerly known as RascalHoudi)



Thanks for the input folks. This is my new ID as I just signed up with REIN and decided to use a username a little closer to my real one.



I'll definitely chat with a MB to get details.



Gary: I'd be interested in any MBs that you could recommend. Thanks.



Mark: Nothing against the Hammer, but I'm just considering options. My day job includes working on the computer from home so there are benefits to me buying locally so that I can have a place to go with more reliable internet access than I can get at my rural house. Oshawa would need to pass a few more checkmarks on the list before I would buy there, but it is close enough to be useable as an everyday office for me.



Thomas: Thanks for the numbers. Good to know.



I'll have to talk to an MB and find out if keeping one unit for my office would count as owner occupied, even if it isn't my principle residence. I'd be pleasantly surprised if it was, as it would open up another purchase option if I didn't mind paying CMHC fees.

 

[Thomas Beyer]

[quote user=JamDuq]my office would count as owner occupied,
A commercial use .. not likely.