TMC Greater Simcoe

Rental Income Qualification Calculator

Does your suite's rental income actually help you qualify? See your GDS/TDS ratios with and without the credit applied, side by side.

Illustrative GDS/TDS estimate only, not a qualification decision. Every lender treats rental income credit differently. Full disclaimer.
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Total mortgage after the ADU is added

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Projected or actual, before any offset

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Typically 50-80%, lender-dependent

Housing costs and debts (override if you have real numbers)
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50% counted toward GDS, standard convention

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Car loans, credit cards, other loan payments

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Illustrative GDS/TDS estimate only, not a qualification decision. Every lender applies rental income credit differently.

Monthly income credited from the suite

$900

Total monthly housing cost used in the ratios: $4,103.71 ($3,503.71 P&I plus tax, heat, and condo fees).

Without the rental income credit

GDS34.0%/ 39% limitWithin limit
TDS37.7%/ 44% limitWithin limit

With the rental income credit

GDS31.6%/ 39% limitWithin limit
TDS35.1%/ 44% limitWithin limit

The rental income offset percentage (default 50%) is not universal — some lenders use a different add-back percentage, some net the credited amount against the housing payment instead of adding it to income (different mechanism, similar effect), and some require the unit to already be tenanted before counting any of it. Confirm the treatment with the specific lender before relying on this number.

Read the full breakdown

For the distinction between an already-tenanted suite and a projected one, and why lender selection matters before the application goes in, read Can Rental Income Help You Qualify?. For a standalone investment property, use the Rental Property Cash Flow calculator instead.