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There is
more exciting news for Canadian homeowners! On October 8, 2024, the
federal government announced a significant update to mortgage insurance
rules designed to help you maximize your property’s potential. Whether
you've been thinking about adding a basement suite or transforming that
garage into a laneway home, these changes make it easier than ever to
create rental suites.
What’s
New?
Starting January 15,
2025, homeowners can access insured refinancing to add secondary suites
to their properties. Here’s what you need to know:
- Who’s
Eligible?
- Homeowners who already
own their property and occupy one of the existing units, or have a
close relative living in one of the units.
- The new unit must be
intended for long-term rental use—short-term rentals like Airbnb
are not allowed.
- The additional units
must be fully self-contained and meet municipal zoning requirements
(e.g., a basement suite with a separate entrance or a laneway
home).
- What
Can Be Added?
- Legal, self-contained
units such as basement suites or laneway homes, adhering to local
zoning rules.
- Up to four dwelling
units are permitted, including existing units.
- Financial
Parameters:
- Maximum Loan-to-Value
(LTV): Up to 90%, including the value of new units.
- Maximum Property Value:
The total "as improved" value must be under $2 million.
- Maximum Amortization: 30
years.
- Additional financing
should only cover the cost of the project.
Why Now?
Recent changes in
municipal zoning, supported by the federal Housing Accelerator Fund, have
made adding new rental units more feasible than ever. With these new
mortgage insurance rules, homeowners can tap into the opportunity to
create more housing while potentially generating extra income—ideal for
seniors looking to age in place.
Get Ready
for January 15, 2025!
If you’ve been
considering adding a secondary suite to your property, now’s the time to
start planning. With this new refinancing option, you can expand your
home’s potential and help address Canada’s housing needs.
For more information
or to discuss how this could benefit your situation, feel free to reach
out to us!
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