Buying a property with a basement apartment can help pay your mortgage.  At the same time, you need to understand how to get financing and what details that you need to pay attention to.

Buying a property with less than 20% down (insured mortgage/purchase)

Purchase price up to $999,999

A client can buy a property with up to 2 units (legal or legal non conforming self-contained units) in it and use up to 100% of the rental income from the second unit to help qualify for more of a mortgage or a higher purchase price. 

For example: 

John and Sally have a combined income of $140,000, no debts

They qualify for a purchase price of $700,000 with 10% down....if they add a second unit or buy a property with a basement apartment they can use 100% of the rent to increase their buying power. 

Or (buy with a basement apartment and increase their buying power): 

Assuming they buy a property for $850,000 with $85,000 down and have a basement apartment that gets $1500 they qualify. In this case, assuming the basement apartment is legal or legal non conforming (fire retrofit) they will qualify. 

As you can see this will make a huge difference to what this couple can buy or how you can expand their buying power. 

Buying a property with 20% or more down (or any purchase over $1 million)

A client can buy a property with up to 4 units (and use 50% of the rental income from each unit towards qualifying)

Buying a property and adding a second income unit

*for both options above a client can buy a property and use purchase plus improvements to build the second unit, and use 50% of the rental income via market rent report*

This is an amazing option for a client to buy a property (east york bungalow for example) and put a basement apartment in it and mortgage the cost of the renovation of that second unit. 

Buying a property with purchase plus improvements and building in a second unit - AND including the cost of that second unit in the mortgage: 

for Example: 

Mike and Susy have a combined income of $170,000 and no debts

They qualify for a purchase price of $880,000, assuming the 10% down $88,000). 

If they buy a property and do purchase plus improvements to add a unit in the basement they can build a unit for say $40,000 

New purchase price changes to $920,000 - $92,000 (10% down)....and that unit rents for $1500 a month (we can use 50% of the rent or $750 towards qualifying for the $920,000 purchase price). 

As you can see this is a great way to help those clients buy a home and get out of that condo - assuming that is their goal. 

The rental unit not only helps them qualify for a higher purchase price but helps with the mortgage payments....and one day as their family grows they could always refinance and change the basement back into a rec room/family room easily.