Supportive Roommate Income to Qualify for a Mortgage in Alberta
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Did you know that some lenders will accept supportive roommate income to help qualfiy for a mortgage in Alberta?
The challenge with most lenders is that supportive roommate income does not always look like conventional employment income. How you are paid, how long you have received the income and the documentation available can all affect how a mortgage lender reviews it.
I help Alberta borrowers understand how their supportive roommate income may be considered, what documentation may be required and what mortgage options may be available.
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Can Supportive Roommate Income Be Used to Qualify for a Mortgage?
Yes, supportive roommate income can be used to qualfiy for a mortgage with some mortgage lenders when their eligibility and documentation requirements are satisfied.
While many mortgage lenders do not accept this type of income to qualify for a mortgage, there are a few lenders who will consider using this type of income.
Some eligibility requirement lenders may require:
- minimum 2 full years of experience as supportive roommate
- Property must be owner-occupied
- Confirmation of approved status
- Maximum number of people under care should not normally exceed six (including any of their own children).
- Letter of income; or contract from the supportive roommate agency / government ministry confirming approved status as supportive roommate, number of people under care and Tenure of applicant and current approved status as supportive roommate
What If My Bank Won’t Use My Supportive Roommate Income?
If your bank has told you that your supportive roommate income cannot be used to qualify for a mortgage, that does not necessarily mean you are out of options.
Mortgage lenders can have different requirements for how they assess and document supportive roommate income. A lender that does not accept the income, or is unable to verify it under its guidelines, does not necessarily determine how another lender will assess the same application.
Don’t Assume a Bank Decline Means You Don’t Qualify
Supportive roommate income is not conventional employment income, so it may require a different approach to documentation and mortgage qualification.
Before assuming the income cannot be used, have your actual supportive roommate arrangement and documentation reviewed.
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What Is Supportive Roommate Income in Alberta?
Supportive roommate arrangements are an established part of Alberta's developmental-disability support system.
The Government of Alberta identifies Supportive Roommate Living Arrangements as a type of PDD home-living support. Alberta describes this as an arrangement where an individual receiving PDD supports lives with a person or people without a developmental disability who provide support in a family-type arrangement. The home is considered the personal residence of the members of the household.
Alberta's broader PDD program helps eligible adults access services intended to support greater independence in their communities.
What Documents May Be Required for Supportive Roommate Income?
Documentation can be particularly important when a mortgage lender reviews supportive roommate income.
Supportive Roommate Agreement
Your agreement or contract may help establish the nature of the arrangement and the parties involved.
Letter or Documentation From the Organization
Where available, documentation may help establish the supportive roommate arrangement, compensation, minimum 2 years tenure, approved status and history.
Payment History
Records of payments received can help establish the amount and consistency of the income.
Bank Statements
Bank statements may be useful for documenting regular deposits associated with the arrangement.
Personal Tax Documents
T1 General tax returns and Notices of Assessment may still form part of the overall mortgage application, even where additional documentation is used to assess the supportive roommate income.
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How Much Supportive Roommate Income Can Be Used for a Mortgage?
There is no universal amount or percentage that applies to every supportive roommate mortgage application.
How much income can be considered depends on the lender's current requirements and the individual application.
It is common for lenders to cap the supportive roomamte income at 50% of the total income used on an application, however depending on the application lenders may be able to use more than that amount with a minimum of 10% downpayment.
Supportive Roommate Income in Calgary
Calgary has established supportive roommate programs.
For example, Calgary Alternative Support Services specifically describes “Support Homes (supportive roommates)” as one of its support models. It explains that the individual may live with a single roommate, couple or family depending on the setting appropriate for the individual.
Examples of Calgary Organizations Offering Supportive Roommate or Support Home Programs:
Calgary Alternative Support Services: Support Homes and Supportive Roommates
Some other examples include: Loramar Services Ltd, Calgary Progressive Lifestyles Foundation andResicare Society of Calgary.
Getting A Mortgage With Supportive Roommate Income in Calgary, AB
If you receive supportive roommate income and are purchasing or refinancing in Calgary, Airdrie, Cochrane, Chestermere, Okotoks, Canmore or surrounding communities, I can review how your income is structured and what documentation is available.
Supportive Roommate Income in Edmonton
Supportive roommate arrangements are also used throughout the Edmonton region.
The mortgage qualification principles remain the same: establish the arrangement, payment source, history, documentation and expected continuation of the income.
Edmonton and Surrounding Communities
I can review supportive roommate income for borrowers in:
Edmonton, St. Albert, Sherwood Park, Spruce Grove, Stony Plain, Leduc, Beaumont, Fort Saskatchewan and surrounding communities.
Examples of Edmonton Organizations Offering Supportive Roommate or Support Home Programs:
Edmonton Integrated Services (EIS), Community Living Alternative Services (CLAS), McMan Youth, Family and Community Services Association, The Good Samaritan Society and Neighborhood Bridges.
Supportive Roommate Income Across Alberta
I can review supportive roommate income for borrowers throughout Alberta, including:
- Calgary and surrounding area (Airdrie, Cochrane, Chestermere, Okotoks, Langdon, High River etc)
- Edmonton and surrounding area (Sherwood Park, St Albert, Spruce Grove, Leduc, Fort Saskatchewan, Beaumont, Stony Plain, Camrose etc)
- Red Deer
- Lethbridge
- Medicine Hat
- Fort McMurray
- Canmore
as well as smaller and rural Alberta communities.
Does My Alberta Location Affect Whether the Income Can Be Used?
Your location by itself does not determine whether supportive roommate income can be considered for mortgage qualification.
The more important factors are the income arrangement, payment history, documentation, overall mortgage application and applicable lender requirements.
For additional information about Alberta's PDD program:
Government of Alberta: Persons with Developmental Disabilities (PDD)
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Supportive Roommate Income Mortgage FAQs
Can supportive roommate income be used for a mortgage in Alberta?
Yes. Some lenders consider qualifying supportive roommate income when applicable eligibility and documentation requirements are satisfied.
Is supportive roommate income guaranteed to be accepted?
No. Income treatment varies by lender and individual circumstances.
It is always best to reach out to Owen Langis Mortgage Broker to review your application in detail first.
Does supportive roommate income have to appear on my personal tax returns?
Not necessarily in every situation. It is common for supportive roommate income to be non taxable and would not appear on your personal tax returns.
Is supportive roommate income tax-free?
Certain caregiver payments may receive tax-exempt treatment when applicable CRA requirements are satisfied. Not every supportive roommate payment is automatically tax-exempt.
Can I get pre-approved using supportive roommate income?
Yes, the actual supportive roommate arrangement and available documentation should be reviewed as part of the pre-approval process.
What if my bank won't use my supportive roommate income?
Different lenders can have different income requirements. A decision from one lender does not necessarily establish how another lender will assess the same income.
Helpful Alberta Supportive Roommate Resources
Government of Alberta PDD
Learn about Alberta's Persons with Developmental Disabilities program and the home-living supports available to eligible adults.
Support Home / Supportive Roommate Living Arrangements
Alberta's documentation specifically describes Support Home/Supportive Roommate Living Arrangements and how the household arrangement operates.
Government of Alberta: Support Home/Supportive Roommate Living Arrangements
Canada Revenue Agency
CRA provides information regarding social-assistance payments and circumstances where certain caregiver payments may be excluded from income.
Supportive Roommate Mortgage Review
Available to borrowers throughout Calgary, Edmonton, Red Deer, Lethbridge, Medicine Hat, Fort McMurray, Grande Prairie and communities across Alberta.
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Information on this page is provided for general educational purposes and is not a commitment to lend, mortgage approval, tax advice or legal advice. Treatment of supportive roommate income varies by lender and individual circumstances and is subject to current lender and mortgage insurer requirements, borrower qualification, acceptable property, credit and supporting documentation. Tax treatment should be confirmed with a qualified tax professional. Lender guidelines can change at any time without notice and the information on this page can become outdated.
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