New Initiatives To Boost Housing in Canada

On October 8, 2024, Deputy Prime Minister and Minister of Finance Chrystia Freeland and a few other key government officials unveiled some pretty exciting initiatives that could change the game for homeowners across Canada. If you’ve ever thought about adding a secondary suite to your home—or if you’re just curious about the housing market—then you’ll want to pay attention to these new changes.

The federal government is on a mission to tackle the housing crisis by aiming to build 4 million homes. To help make this happen, they’re turning the spotlight on underused properties and promoting the creation of secondary suites. If you’re wondering what a secondary suite is, think of it as a cozy apartment nestled in your basement or an in-law suite above the garage. These little living spaces can provide extra rental income, help with housing density, and contribute to vibrant community living.

Now, here’s the big news: starting January 15, 2025, homeowners will have a fantastic opportunity to refinance their insured mortgages to finance the construction of these secondary suites. Let’s break down the highlights:

Access to Equity: Homeowners will be able to tap into up to 90% of their home’s value, which includes the added value from the new suite. So, if your home appreciates, you get even more bang for your buck!

Longer Amortization Period: You can spread those mortgage payments over a longer period—up to 30 years—making it easier to manage your finances while building that suite.

Increased Price Limit: The mortgage insurance home price limit is also seeing a boost, jumping up to $2 million for those refinancing to add a secondary suite. This opens up possibilities in various housing markets, meaning more homeowners can jump on this opportunity.

Not only do these changes give you the chance to create additional living space, but it also opens the door to potential rental income. Imagine being able to offset your mortgage payments by renting out that cozy suite to a student or a young family. It’s a win-win situation that also supports the community by providing more affordable housing options.

The announcements made are more than just policies; they’re stepping stones towards a more sustainable and inclusive housing landscape. By unlocking the potential of underused properties and making it easier to finance secondary suites, the government is paving the way for a brighter housing future. So, if you’ve ever thought about making your home work a little harder for you, now might be the perfect time to explore those possibilities!

Stay tuned for more updates, and let’s look forward to seeing how these initiatives transform our communities!