The CMLS rental worksheet is very comprehensive. It includes a list of expenses for non-subject properties with minimums. Here is a list of expenses

  • Management ($0 if less than three units, otherwise use $500/unit)
  • Annual Mortgage Payment(s) P+I
  • Property Taxes
  • Utilities ($0 if the tenant pays, or use lesser of actual or $1200)
  • Insurance (greater of actual or $500)
  • Maintenance (greater of actual or $1000)
  • Condo Fees (if applicable, 100% must be used)
  • Other (specify)
It also uses a vacancy rate of 3% to calculate the net revenue but uses 100% of the revenue. If there is a HELOC involved, like many other lenders, CMLS uses the HELOC Limit amortized over 25 years using the BOC Rate.

In the app, if the tenant pays the expenses, you should enter $0 for heat, water, and hydro so that it won't be counted toward utilities.

If the landlord pays, CMLS uses the lesser of actual utilities or $1200, which means it's capped at the $1200 maximum.

What's also important to note is that the CMLS formula for DSCR includes mortgage payments as an expense, whereas the standard DSCR formula does not.

The AVEO flavour of the DSCR sheet uses 80% of the rental revenue and 0% for the vacancy rate.

AVEO also has slightly different expense calculations, equal to total debt payments + taxes and 100% condo fees.

Similar to the worksheet, our app will calculate the maximum purchase price with AVEO and non-AVEO flavours.