Buying a Legal Vs Illegal Suite in British Columbia can have both benefits and drawbacks. In some cases, they can help a prospective buyer qualify for a larger mortgage. However, they may also invalidate a member’s insurance coverage. If the owner does not plan on using the suite, they may qualify for the rental supplement offered by the BC government.
They may invalidate a member’s insurance coverage
It is possible for insurance companies to invalidate insurance coverage for members who are using an illegal suite in their home. This is particularly true for those who have not told their insurance provider about the suite. This is one reason why a member should consult a mortgage broker before deciding to use an illegal suite.
They can still qualify for the BC government’s rental supplement
The rent supplement program is available to tenants and landlords who have dependents. This program provides up to $300 per month for singles or $500 per month for households with dependents. Payments are direct deposited to landlords and are expected to be issued this week. In order to qualify for the program, applicants must earn at least $74,150 per year in gross household income, or $113,040 if there are other dependents.
Although BC government began offering rental supplements a few days ago, landlords may be wary to apply. If landlords know their tenants live in an illegal suite, they may refuse to fill out the Temporary Rental Supplement application. This can make it difficult for tenants to secure rental assistance. However, legal suite tenants can still qualify for the rental supplement if their landlords do not refuse to share information.
The Canadian Mortgage and Housing Corporation has estimated that there are about 155,000 secondary suites in BC. However, Square One estimates that up to 15% of these suites are illegal. The province has received 17500 rental supplement applications. Although these numbers may be low, they do indicate that a landlord should take action if they refuse to comply with the program.
However, it is important to note that illegal suites are illegal in BC. If you are in this situation, you should contact a mortgage broker to get an assessment. The government is currently offering up to $500 per month in rental subsidies to eligible households. It is important to know that the rental supplement does not last forever, and that you can apply for it if necessary.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.