An owner occupied plus rental property would be a house that you’re purchasing for yourself to live in that also has either a suite, carriage house, or basement that you’re able to rent out to another person. The rules around down payment in this case are same as with a normal purchase in that you can put 5% down. A portion (usually 50%) of the income generated from the rental portion of the property can be added to your regular income, thus helping you to qualify for a more expensive purchase than you would have otherwise. Rental income from a suite can be a great way for a buyer to get into the larger house he or she wants a little sooner than would have been possible without the suite.
A non-owner occupied rental property is simply one that is not lived in by the owner and is instead rented out completely, whether it is a house, condo, or even a house with more than one suite. The rules around down payment are different here, and buyers must put 20% down instead of just 5%. The important thing to keep in mind is that you need to be able to qualify not just for the mortgage on the rental property, but also any existing mortgages you have as a complete picture. Different lenders has slightly rules on calculating the net rental income. Bava Mortgage is an expect on finding the right lender for you.