Taking equity out of a Student Rental Property

[Stephen Tsan]

Hello, 

I own a single family house that is located near a university. In Toronto Canada.

I live with my wife family in the basement, and I rent out the extra rooms upstairs

I would like to take equity out of the home to purchase another investment.

I don’t have a Mortage and own the home free and clear. 

I been told by mortgage broker that it could not be done since it is a home close to the university and considered a rooming house so they can’t take the equity out.

Does anyone have any more information about this?

Thank you in advance