New Refinance Rules for Secondary Suites in Canada

Posted on by Gerard Buckley
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Looking for a way to ease financial pressure on your family? The latest announcement from the government of Canada could be worth noting.

The Canadian government recently announced new refinance rules aimed at making it easier for homeowners to build secondary suites, such as basement apartments or in-law suites. This initiative is part of a broader strategy to tackle the ongoing housing shortage in Canada and provide more affordable living options.

 

What Are the New Rules?

Under the new rules, taking effect January 15th, 2025, homeowners can now refinance up to 90% of their home’s value to fund renovations for secondary suites. This means you can borrow more against your home’s value to cover the costs of building or upgrading these additional living spaces. 

Further to that, the mortgage insurance price limit is being increased to $2 million, reflecting the rising costs of home values – especially those with multiple units. The goal is to simplify the financing process and encourage more Canadians to create rental units, which can help alleviate the pressure on the housing market.

This move is particularly important as Canada continues to face a significant housing crisis. By unlocking the potential of existing homes, the government hopes to increase the supply of rental properties, making it easier for individuals and families to find affordable places to live.

 

Benefits of Secondary Suites

Adding a secondary suite can provide several benefits for homeowners:

  • Extra Income: Renting out a suite can help cover your mortgage payments or other expenses.
  • Increased Home Value: Homes with secondary suites often have a higher resale value.
  • Flexibility: They can be used for multi-generational living (which qualifies you for an additional $7500), guests, or as a long-term rental.

 

Read more about local secondary suite initiatives going on near Collingwood in our recent guest article.

 

How Buckley Mortgage Broker Can Help

If you’re thinking about adding a secondary suite to your home, it’s wise to consult with mortgage professionals like Buckley Mortgage Broker. We can help you navigate the refinancing process and determine the best financial options for your situation. With our expertise, you can understand how to make the most of the new rules and whether a secondary suite is the right choice for you. 

 

Reach out to us today to discuss your options and explore how a secondary suite could benefit you and your community!