Are you a homeowner looking for ways to maximize your property’s value or earn extra rental income? Or maybe you’re curious about how the Canadian government’s latest housing initiatives can benefit YOU. You’re in the right place!
In a significant move to address Canada’s housing crisis, the government recently announced new measures aimed at building secondary suites and unlocking vacant lands for more homes. Whether you want to add a rental apartment to your basement, convert your garage into a laneway home, or take advantage of unused federal lands, these new actions can help you and make housing more affordable across the country
Refinancing for Secondary Suites: A New Opportunity for Homeowners
Starting January 15, 2025, homeowners will be able to refinance their insured mortgages to fund the construction of secondary suites—like turning an unused basement into a rental apartment or converting a garage into a new living space. Homeowners will be allowed to refinance insured mortgages for secondary suites, which lets them access up to 90% of their home’s value, including the value added by the secondary suite. These mortgage insurance reforms, as well as the forthcoming Canada Secondary Suite Loan Program, will make it easier for homeowners to unlock their home’s equity to finance construction. This means borrowers can amortize the refinanced mortgage over 30 years, making it more manageable to add valuable rental space to your property.
Secondary suites are a fantastic way to earn extra income by renting out space and, at the same time, they can help families stay close together. Imagine downsizing into a laneway home and letting your kids raise their family in the main house—this opens up so many possibilities!
Increased Mortgage Insurance Limits for Secondary Suites
To ensure this program benefits homeowners in every market, the government has raised the mortgage insurance home price limit to $2 million for those refinancing to build a secondary suite. Whether you live in a large city or a growing community, this gives you greater flexibility to access the funds needed for home improvements that boost your property value.
Vacant Land Tax Consultations: More Housing Supply
The government is also working with provinces and municipalities to implement taxes on vacant land. The goal? To encourage landowners to make the most of their properties by developing homes. This will help unlock much-needed housing supply and make better use of available land in your community.
Unlocking Federal Lands for Housing Development
An additional 14 federal properties have been added to the Canada Public Land Bank, bringing the total to 70 properties available for homebuilding. This initiative aims to create 250,000 new homes by using underutilized government lands, further easing the housing crisis and making homes more affordable.
What Does This Mean for You as a Homeowner?
If you’ve been considering adding a secondary suite or upgrading your property, this is your chance! With easier access to refinancing, increased mortgage insurance limits, and the Canada Secondary Suite Loan Program, you can build a rental apartment to help with your mortgage.
Interested in how these changes can benefit you? Feel free to reach out!
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