The federal government has introduced a series of new measures aimed at increasing the housing supply & affordability across the country.
One of the new initiatives being introduced is changes to the rules for the development of secondary suites. This is being implemented to encourage the development of secondary suites in existing residential properties by making use of unused basements, garages, and other spaces. The goal is to reduce urban sprawl by increasing density in established neighbourhoods. Not only does this open up opportunities to potentially increase homeowners property value it also takes steps to address the current housing shortage.
Here’s what you need to know.
In order to qualify you must already own the property, live in one of the units (or have a close relative doing so). You must intend to construct additional units on the property and these units may not be used for short term rentals.
- Eligible Canadians will be able to access up to 90% of their home’s value through default-insured mortgage refinancing to build secondary suites starting January 15, 2025.
- The maximum amortization for refinancing has been extended to 30 years, giving borrowers more time to spread out their payments.
- Homeowners can now add up to four units on your property.
- They must be self contained units, meaning that it has to have separate living facilities, such as a private entrance, kitchen… ensuring compliance with municipal zoning requirements.
Please feel free to contact me in complete confidence if you’d like to find out more about the new initiatives the federal government has introduced this year to address the housing shortage in Canada and how it could affect you.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative or insurance representative.
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