Found Spaces Realty Group

House hacking · The calculator

See what a house hack really costs you.

Put in the price of a 2, 3 or 4 unit home and the rent from the units you won't live in. You'll see your down payment, what you pay each month after the rent comes in, and the income the bank looks for.

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The home

Units, counting yours

The mortgage

Paid off over
30 years is for first-time buyers.
Your month$37,000 down · see the breakdown$2,409

You (optional)

Taxes, insurance, upkeep and debts

The next step

Numbers are easy. The right home is the hard part.

Tell us where you want to live and we'll send you the homes there with a second unit, each one run through this same math.

No down payment yet?

Rent-to-own it, and keep the basement rent.

You move in now and part of each month builds your down payment, at a price agreed up front. On a home with a second unit, that unit's rent is yours the whole time.

Rent$2,750
Toward your down payment$1,000
Basement rent-$1,750
Your month$2,000
See if rent-to-own fits you

Want homes where these numbers work?

A name and a mobile or email. You get the four-page starter kit now, then homes in the area you want with the math done for each one.

When?
Talked to a lender? (optional)

We follow up by text or email, usually within the hour.

How the math works

What's in the number, and what isn't.

  • Mortgage payment at your rate, compounded twice a year like every Canadian fixed mortgage.
  • Under 20% down, mortgage insurance is added to the loan: 4.00%, 3.10% or 2.80% of it depending on your down payment, plus 0.20% on a 30-year mortgage.
  • Minimum down: 5% on the first $500,000 and 10% above it for 2 units; at least 10% for 3 or 4 units; 20% at $1.5 million and up.
  • Property tax at 1% of the price a year unless you enter the real figure (it's often lower), insurance $175 a month, and 1% of the price a year set aside for repairs.
  • The bank's test: the higher of your rate plus 2 points or 5.25%, with housing costs under 39% of income (44% with other debts). The rent from a 2-unit home counts in full, from a 3 or 4 unit home by half.
  • Not included: closing costs like land transfer tax and legal fees, empty months between tenants, and utilities you pay for the other unit.

General information, not mortgage, legal or tax advice. Lenders, cities and buildings differ; confirm with a mortgage broker before you write an offer. Sandy MacKay, REALTOR®. Found Spaces Realty Group, Real Broker Ontario Ltd., Brokerage.

Frequently asked

House hacking questions

If you live in the home, a 2-unit house takes the same down payment as any first home: 5% on the first $500,000 and 10% on the part above it. A $620,000 house with a basement unit needs about $37,000. A 3 or 4 unit home needs at least 10% down. Homes at $1.5 million and up need 20%.

Yes. On an owner-occupied 2-unit home, insured lenders can count up to all of the rent from the other unit toward your income. On a 3 or 4 unit home it is up to half. Each lender applies it a little differently, so treat the income figure here as a close guide and confirm it with a mortgage broker.

Your mortgage payment, mortgage insurance when you put down less than 20%, property tax, home insurance and money set aside for repairs, minus the rent from the units you don't live in. It also runs the bank's stress test to show the household income you need. It leaves out closing costs, empty months between tenants and any utilities you cover for the other unit.

Yes. Rent-to-own a home with a second unit and the rent from that unit is yours while you build your down payment. Say the rent is $2,750 and $1,000 a month goes toward your down payment: that's $3,750. A basement unit at $1,750 brings your month to $2,000. Terms vary by company, and three years is the usual sweet spot.

Most likely. Ontario now allows up to three homes on most residential lots in its towns and cities, and Toronto allows four. A unit has to meet the building and fire code, and some cities ask you to register it. Only a legal unit counts as a unit to a lender, so check before you buy.