Investing in a Legal Duplex in Haliburton: A Smart Financial Move
If you're looking to buy a home in Haliburton, Ontario, you may be wondering how to qualify for a mortgage while keeping your monthly payments manageable. 259 Highland Street, Haliburton, an in-town legal duplex, offers an excellent solution: rental income from the basement suite can help offset your mortgage payments and increase your borrowing power.
Why 259 Highland Street is a Prime Investment
Located in a highly sought-after area with strong rental demand, this property presents a rare opportunity for both homeowners and investors. With two separate living units—a spacious 4-bedroom, 2-bathroom main unit and a self-contained 1-bedroom basement suite—this duplex provides flexible income-generating potential.
Key Features of the Property:
- Fully Renovated in 2010 – Modern systems and updated interiors while maintaining original charm.
- Main Unit: 4 bedrooms, 2 bathrooms, a cozy wood-burning fireplace, and a screened-in covered back porch.
- Basement Suite: 1 bedroom, 1 bathroom, a separate entrance, and independent utilities for added privacy.
- Spacious Backyard: Perfect for outdoor activities, gardening, or relaxation.
- Town Sewer Connection: Ensures hassle-free utility management.
- Prime Location: Close to downtown Haliburton, local amenities, and recreational areas.
How Rental Income Can Help You Qualify for a Mortgage
Purchasing a $670,000 home requires careful financial planning, but having a rental unit can significantly boost your borrowing power. Lenders allow a percentage of rental income to be factored into your total income when qualifying for a mortgage. This means the basement suite at 259 Highland Street can lower your required income threshold, making homeownership more
accessible.
Mortgage Qualification Estimates
To qualify for a $670,000 mortgage, your required income will depend on:
- Your down payment (e.g., 5% vs. 20%)
- Interest rate (current market rates around 7%)
- Loan term (typically 30 years)
- Debt-to-income (DTI) ratio (most lenders prefer 43% or lower)
- Property taxes & insurance (additional monthly costs)
Scenario 1: 20% Down Payment ($536,000 Loan at 7%)
- Estimated Monthly Mortgage Payment: $3,575 (excluding taxes/insurance)
- Required Income Without Rental Income: $107K – $120K/year
- With Basement Rental Income ($1,100/month, 75% counted):
- $825/month added to income ($9,900/year)
- New Required Income: $97K – $110K/year
Scenario 2: 5% Down Payment ($636,500 Loan at 7%)
- Estimated Monthly Mortgage Payment: $4,250+ (including mortgage insurance)
- Required Income Without Rental Income: $125K – $140K/year
- With Basement Rental Income:
- $9,900/year added to income
- New Required Income: $115K – $130K/year
By using the basement suite as a rental, you can potentially reduce your required income by $10,000 per year, making qualification easier.
Maximizing Your Investment: Live, Rent, or Both
This versatile property offers several options depending on your financial goals:
- Live in the Main Unit, Rent the Basement – Offset your mortgage costs while enjoying a spacious family home.
- Rent Both Units – Generate a strong rental income in a high-demand market.
- Short-Term Rentals – Explore seasonal or vacation rentals for increased profitability.
Why Haliburton is a Great Market for Rental Properties
Haliburton is a thriving community with a strong rental market due to:
- Year-round tourism and seasonal residents
- Growing local population
- High demand for quality rental properties
- Proximity to lakes, outdoor activities, and local businesses
Take the Next Step Toward Homeownership
With the rising cost of real estate,
leveraging rental income to qualify for a mortgage is a smart strategy.
259 Highland Street, Haliburton offers an ideal combination of
modern updates, strong rental potential, and a prime location—making it a
fantastic investment opportunity.
📞 Interested in this property? Contact Haliburton Gold Group today!
🌐 Visit: Haliburton Gold Group
📍 Address: 259 Highland Street, Haliburton, ON
💰 Price: $670,000
Final Thoughts
Purchasing a legal duplex like 259 Highland Street in Haliburton, ON, allows you to maximize homeownership benefits while reducing financial strain. By factoring in rental income, you can qualify for a mortgage with a lower required income and enjoy long-term financial stability.
Schedule a viewing today and explore how this property can work for you!
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