Buying a Home With a Suite to Help Pay the Mortgage in East Hill

Quick answer: A home with a suite can help cover your mortgage, and the City of Vernon now allows suites and accessory homes on many residential lots. Before you buy, confirm the suite’s permits and safety, ask your lender how they’ll treat the rent, and learn BC’s tenancy and short-term rental rules.

A “mortgage helper” suite is a common goal for buyers, and East Hill is close to downtown, Vernon Secondary School and Vernon Jubilee Hospital, which can make a suite easier to rent. But the suite has to be the real thing, not just a basement with a hot plate. Here’s what to check.

This is general information, not legal, tax or financial advice. Confirm your situation with a lawyer, accountant, lender and the City of Vernon.

What Vernon allows now

Under BC’s small-scale multi-unit housing legislation (Bill 44), the City of Vernon says it now allows small-scale multi-unit housing on lots that used to be zoned for single-detached homes. According to the City:

three units are allowed on lots under 280 m², and four units on lots over 280 m²;
secondary suites are permitted in single-family homes and duplexes;
accessory dwelling units, like garden suites and carriage houses, are allowed.

Zoning is only part of the story. Each property still has to meet the zoning bylaw’s details, the BC Building Code and fire separation rules. My post on adding a suite or carriage house in East Hill covers the city side in more depth.

Is the suite legal and safe?

This is the big one with older East Hill homes. A suite may have been added decades ago, or last year, with or without permits. Ask for:

Permit history. Ask the seller, and check with the City of Vernon for building permits and final inspections.
Safety basics. Smoke alarms, exits, ceiling heights, windows and fire separation between units.
Services. Is there enough electrical capacity and heating for two households? Is there separate laundry?
A licensed home inspection. Ask the inspector to look closely at the suite, not just the main floor.

An unpermitted suite isn’t always a deal-breaker, but it can affect insurance, financing and your costs to bring it up to code. Find out during your subject period, not after. My local’s checklist for buying an older home in East Hill covers the rest of the house.

How lenders look at suite income

Some lenders will count part of a suite’s rent when deciding how much you can borrow. How much they count, and what proof they want, varies by lender and by whether the suite is legal and rented.

Talk to your lender or mortgage broker before you write an offer.
Bring any existing lease and rent history if the suite is already rented.
Don’t assume the listing’s rent figure is what your lender will use.

Buying with a tenant in place

If the suite is rented when you buy, the tenant comes with the house. BC’s Residential Tenancy Act sets the rules on rent increases, notice and ending a tenancy. If you plan to move family into the suite or change things, get advice first. Ask the seller for:

a copy of the tenancy agreement;
the current rent and deposit amounts;
any notices that have been given.

Short-term rentals: know the limits

If you’re thinking of renting the suite nightly instead, check the rules first. The City of Vernon says the provincial principal residence requirement applies in Vernon. A secondary suite or accessory building can be used as a short-term rental only if it’s operated by a principal resident who lives in a home on the same lot.

The City also requires a business licence and provincial registration, and it has rules on guest numbers and parking. Check the current short-term rental regulations on vernon.ca before you run the numbers.

Suites and first-time buyer programs

A suite doesn’t automatically stop you from using BC’s first-time buyer property transfer tax exemption, the FHSA or the RRSP Home Buyers’ Plan. Each program has occupancy and principal residence rules, so confirm how renting part of the home fits before you rely on it.

Finding the right one

I’ve built or renovated more than seven homes, so I know what to look for in how a suite was put together. Homes with suites come and go on the market, and prices change. The live East Hill homes for sale search is the best place to see what’s available, and I’m happy to look into a suite’s history with you.

FAQ

Can I add a suite after I buy?

Often yes, under Vernon’s current rules, but you’ll need permits, and older homes can need upgrades to meet code. Talk to the City of Vernon before you budget for it.

Does a suite increase my property taxes?

A suite can affect your assessed value, which affects your property tax. BC Assessment and the City can explain how it applies to a specific property.

Can I rent both the suite and the main house as short-term rentals?

In Vernon, short-term rentals are tied to the principal residence requirement, so you generally have to live on the property. Check the City’s current rules.

Thinking about an East Hill home with a mortgage helper? Call or text me at (250) 550-6979, or browse East Hill homes for sale.