As of January 15, 2025, Canada is introducing new secondary suite mortgage refinancing rules that can offer several key benefits for homeowners looking to leverage their property’s potential. These new rules aim to make it easier for homeowners to refinance their mortgages and access more funds when they add a secondary suite (such as a basement apartment or a rental unit) to their property. The new rules allow homeowners to tap into more of their home equity when refinancing to create or renovate a secondary suite. This can be especially helpful if you’re looking to add a rental unit, which could increase the value of your home and provide additional income through rental payments.
Homeowners will now be able to refinance 90% of the post renovation value, up to $2 million, amortized over 30 years, to add a secondary suite to their current property.
Loan to value calculation example - if your home will be worth $700,000 post renovation, you will be able to refinance up to 90%, $630,000 (previously 80% - $560,000).
The introduction of secondary suite mortgage refinancing rules also aligns with the government’s broader efforts to increase affordable housing options. By incentivizing homeowners to create rental units on their properties, this policy can contribute to alleviating some of the housing shortages in high-demand areas.
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