New federal secondary suite program

Starting January 15, 2025, new insured mortgage refinancing options will be available for homeowners seeking to build additional units.

Key Parameters:

• Eligibility: Borrowers must own their property, with one unit occupied by the owner or a close relative, and intend to add self-contained units (e.g., basement suites, laneway homes).

• Unit Limit: Up to four total units, including the existing one.

• Refinancing: Insured refinancing will be allowed to fund the construction of additional units.

• Property Value Limit: The property must be valued under $2 million (post-renovation).

• Loan-to-Value: Up to 90% of the property's value, including the added suite value.

• Amortization: Maximum 30 years.

• Other Requirements: Additional financing cannot exceed project costs, and units must meet municipal zoning standards and not be used for short-term rentals.

These changes aim to support homeowners looking to create additional rental housing while boosting density and helping to address Canada’s housing shortage. If you have any questions about this new program, let’s chat.