And just like that, we have more mortgage rule changes from the Canadian government! If you’re a homeowner considering building a secondary suite, here’s what you need to know about these updates that take effect on January 15, 2025. The federal government is bringing back default-insured refinances with the goal of easing the housing shortage by encouraging more homeowners to build secondary dwellings.

These changes could open up new opportunities for multi-generational living and rental income. Here’s a breakdown of the key details:

What’s Changing?

Starting in 2025, homeowners will once again be able to access insured refinances for the first time since 2016! The goal is to make it easier for Canadians to add secondary suites like basement apartments, laneway houses, or units above the garage on their primary residence or a family member’s property.

Here’s a quick rundown of the key requirements:

• Loan-to-Value (LTV) Ratio: Up to 90% (including suite value).

• Maximum Property Value: $2 million.

• Maximum Amortization: 30 years.

• Maximum Units: 4 units on the property.

To qualify, the property must be owner-occupied or occupied by family members. Short-term rentals, such as Airbnb, won’t be allowed under these insured refinances. Additionally, units must meet local zoning requirements for secondary dwellings.

Why This is Big News for Homeowners

These changes are great news for anyone interested in creating additional housing space on their property, especially as the demand for affordable housing continues to grow. By accessing up to 90% of your property’s value (including the new suite), you’ll have the financing flexibility to build without breaking the bank.

Here’s what makes this update so impactful:

1. Longer Amortization Means Lower Payments:
   With a maximum 30-year amortization, you can spread out your payments over a longer period, making it more affordable to add that secondary suite.

2. Higher Property Value Cap:
   With the new limit set at $2 million, more homes in Canada’s hottest markets will be eligible for insured refinances, making this a viable option for more homeowners.

3. Support for Multi-Generational Living:
   By allowing secondary suites, this policy promotes multi-generational living, which is increasingly popular. Whether you’re building a suite for a family member or looking to generate extra income, this change provides much-needed flexibility.

What Does This Mean for You?

If you’re considering building a secondary suite on your property, these rule changes could be a game-changer. As we head into 2025, now is the time to start planning your project:

• Homeowners: Ready to explore the value of your home and see if you qualify? Reach out to me for a free market report and let’s discuss your financing options.

• Homebuyers: Interested in purchasing a property with secondary suite potential? Contact me to create a custom budget so you can make the most of this new opportunity.

2025 is shaping up to be a busy year, and these changes mean more options for homeowners and homebuyers alike. Don’t miss out on the chance to enhance your property’s value and create additional income streams with these exciting updates!

Just out of curiosity, are you thinking about building a secondary suite? Would it be helpful to discuss how these changes could benefit you? Reach out today, and let’s make 2025 your most prosperous year yet.

Your Friend in the Mortgage Business,
Adam Walker
226-567-4274 ext. 1
[email protected]

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