Airbnb-ing to Help Cover Mortgage Payments? What You Need to Know
- Edith Parinas
- Jan 15
- 3 min read
Hi, I’m Edith Parinas—a mortgage broker, yoga teacher, and yes, someone who once jokingly considered turning my yoga study into an Airbnb to offset mortgage payments (imagine the listings: “Downward Dog Oasis – Perfect for Mindful Travelers”).
While I ultimately decided to keep my mat private, short-term rental income has become a popular strategy for homeowners looking to generate extra cash.
But as the holiday season rolls in—bringing festive guests, tourists, and a little extra cheer—it’s also a time to reflect on how short-term rentals like Airbnb are being reshaped by regulations. Whether you’re using Airbnb to help with your mortgage or just curious about its impact on the housing market, let’s explore what’s happening and how it might affect you.
The Original Airbnb Dream (and How It Flipped)
Airbnb started with a simple idea: offering a spare air mattress and breakfast as an affordable, casual alternative to hotels. But today, short-term rentals have exploded into a full-scale business, with homeowners renting entire properties to tourists.
While this model has helped many Canadians cover mortgages or generate income, it’s also contributed to housing shortages by removing homes from the long-term rental market. Now, governments across Canada are cracking down, with new regulations designed to turn short-term rentals back into homes for local residents.
The Pros and Cons of Airbnb as Mortgage Support
The Pros
Extra Income: A spare room or secondary suite can help offset mortgage payments.
Flexibility: Short-term rentals let you earn income without committing to long-term tenants.
Home Affordability: For many homeowners, the added cash flow makes ownership more attainable.
Tourism Boost: Hosting out-of-towners can contribute to the local economy.
The Cons
Tougher Regulations: Governments are imposing stricter rules, higher taxes, and bigger fines.
Mortgage Risks: Lenders may be wary of approving loans for properties used primarily for short-term rentals.
Housing Shortages: Critics argue that Airbnb is driving up rents and reducing housing availability for locals.
Increased Costs: Licensing fees, compliance requirements, and reduced tax benefits are cutting into profits.
New Rules to Know
Federal Tax Changes:Starting January 2024, expense deductions for short-term rentals will be denied in areas where such rentals are restricted.
BC's Principal Residence Requirement:As of May 2024, homeowners in cities with over 10,000 residents can only rent out rooms in their primary residence, with hefty fines for non-compliance.
Quebec Cracks Down:Quebec now imposes fines of $50K for uncertified listings and $100K for platforms hosting unauthorized rentals.
GST/HST on Sales:A recent court ruling determined that homeowners who use properties exclusively for short-term rentals may owe GST/HST on the property’s sale.
What This Means for Homeowners
For some, these changes may signal the end of the short-term rental era as a mortgage-saving tool. For others, it’s a call to adapt. Here are a few tips if you’re considering or currently hosting short-term rentals:
Know the Rules: Stay up-to-date on local and federal regulations to avoid fines or penalties.
Consider Alternatives: Long-term rentals or renting out a portion of your home (like a basement suite) may offer steadier income without the regulatory headaches.
Keep It Local: If you’re in an exempt area, such as resort towns, short-term rentals might still be a viable option.
Mindful Hosting for a Balanced Future
As someone who loves the idea of turning a home into a welcoming space (even if it’s just for yoga), I understand the appeal of short-term rentals. But as regulations shift, it’s important to balance your financial goals with the realities of the market.
If you’re considering using rental income to help with your mortgage, let’s chat! I’ll help you navigate these changes and find creative solutions that work for you—whether it’s through refinancing, budgeting, or simply figuring out the best path forward.
And while I’m keeping my yoga practice off Airbnb for now, if you ever need a lesson on balance—financial or physical—you know where to find me.
Happy Holidays!
– Edith Parinas
'The Mortgage Broker ~ The Yogi ~ The Blogger'
Comments