Rental crunch, rising housing costs highlight value of secondary suites for first-time homebuyers

Like many buyers, Karen Coyle had a checklist when shopping for her first home.

Near the top of that list was the option to add a secondary suite.

"I wanted to make sure I bought a house I would be able to afford without the help of the income from the suite," said Coyle. "But I also wanted to buy a house that could easily be suited, so that I would have a buffer in case mortgage prices rose."

In their Spring Market Trends Report, RE/MAX found Calgary's harsh winter didn't keep people from entering the home market.

"Calgary experienced a red-hot seller's market in the first two months of the year with listings 30 per cent lower than where they would be in a balanced market," said the report.

As Canada's major banks make moves to increase mortgage rates, real estate experts are saying pre-approvals are the way to go for consumers.

On Aug. 20, the Bank of Montreal announced it was increasing the interest on most new mortgages by 20 basis points, a move soon echoed by TD, RBC and other banks.

According to a report by RBC, four in 10 Canadians planning to enter the housing market within the next couple of years will be first time buyers.

The 20th Annual RBC Home Ownership Poll found the majority of Canadians are taking a wait and see approach to purchasing a home of their own with 15 per cent likely to buy in the next two years; a decrease of 12 per cent compared to 2012.