Mortgage - want to let out hse now?

D

dsho

Guest
Can anyone advise on following.... I recently got married and as we both have our own houses, I now want to rent mine out. I have been with my original mortgage lender for 6yrs and am just coming of fixed rate. Do I need to advise them that I will no longer be an owner occupier and if I don't tell them what are the likely knock on effects????
Tks
 
Yes, you must tell your lender. It's in the conditions of your mortgage.

The rate might increase, maybe not, I'm not sure.

You must also tell the house insurer.

You must also cancel the TRS, but you will be able to deduct the mortgage interest from the rental income to arrive at the taxable rental income.

You can cancel the MPP, as you don't need it on an investment property. But you might want to keep it.

You will add the net rental income onto your next tax return.
 
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