Adding a Rental Suite to your Purchase
Adding a Rental Suite with Purchase Plus Improvements
One of the most powerful ways to use this program is by adding a rental suite to your home.
Think of it like this:
👉 You’re not just upgrading your home
👉 You’re creating an income stream at the same time
How it works
With Purchase Plus Improvements, you can:
- Buy a home
- Include the cost to add or finish a rental suite (basement apartment, in-law suite, etc.)
- Use that cost in your mortgage
But here’s where it gets really interesting…
👉 We can often use the projected rental income from that suite to help you qualify
Example
- Purchase price: $350,000
- Cost to add suite: $50,000
- Total: $400,000
Let’s say the suite could rent for $1,200/month
👉 A portion of that income (depending on lender) can be added to your application to increase your borrowing power
 Why this is powerful
1. Helps you qualify for more
Rental income can boost your approval amount
2. Offsets your mortgage payment
Tenant helps cover your monthly costs
3. Builds long-term wealth
You now own a home and an income-producing asset
Important things to know
- The suite typically needs to be legal or meet lender guidelines
- You’ll need quotes and plans for the work
- An appraiser will estimate the market rent
- You still complete the work first, then get reimbursed
The big picture
Instead of just buying a home…
👉 You’re buying a home that helps pay for itself