Home loans can now include rental income from accessory apartments

The government is proposing to let people borrow more money to buy a house. This new rule would allow lenders to count potential rental income from a separate apartment on the property towards a borrower's ability to repay the loan.

This change makes it easier for people to afford homes in areas where housing is expensive. By allowing lenders to factor in rental income from an accessory dwelling unit (ADU), more people can qualify for mortgages. This could lead to more ADUs being built, increasing housing supply and potentially lowering rental costs in the long run. It also means homeowners can offset their mortgage payments with rent from a tenant.