As discussed in our fall blog on Secondary Suites, the federal government launched a new refinancing program in late 2024 to help homeowners build additional living areas on their property. These could be converted garages, basement apartments, or separate buildings on the existing property.
The move was made to give homeowners an easier path to building additional housing. This supply could potentially fill a need for those looking for a home or provide housing for a relative to live nearby. The loan amount was initially set at $40,000.
But as of the December 16 Federal Economic Statement, the low-interest loans in the Canada Secondary Suite Program have been doubled. The loan limit has risen from $40,000 to $80,000. The program, with the new loan limit, was launched on January 15.
As a result, it’s now more cost-effective for existing homeowners to pay for the construction of a secondary suite. In addition, homeowners will also be eligible to pay off the loan over 15 years at a rate of only 2%.
Additional Measures
Also, on January 15, the federal government enabled borrowers to access additional financing of up to 90% of the post-renovation value of their homes. The value is capped at $2M and amortized for up to 30 years.
Combining the above financial options to help cover the cost of adding a secondary suite is permitted.
If you’re currently looking for housing on a larger scale, the lowering of down payments for homes between $1M – $1.5M took effect on December 15. And if you’re a first-time homebuyer or in the market to purchase a new build, 30-year amortizations are available in both situations.
In this challenging housing market, it’s important to take advantage of the incentives and other measures available to you. If you need help navigating them all, I can provide guidance!
Are you ready to move to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
Photo by Alisa Orlova on Unsplash
