In addition to the federal government’s recent mortgage changes, the government has also announced a refinancing program to assist homeowners in building supplemental living areas, such as basement apartments or converted garages.
As of January 2025, insured refinancing is available to homeowners looking to create rental units, generate extra income, and provide the housing market with much-needed supply.
To find out if you’re eligible to add one of these living spaces to your property, read the criteria below:
- Eligibility
- Unit Specifications
- Unit Limits
- Property Value
- Loan-To-Value (LTV)
- Project Costs
- Amortization
- Advantages
Eligibility
Before beginning to plan to add more units, you must own and live in the home or have a close relative as a resident.
Unit Specifications
New units, such as basement or laneway suites, must be self-contained and constructed according to local zoning rules. Building these units for short-term rentals, such as Airbnb purposes, is not permitted.
Unit Limits
There is a limit of three additional units per property, for a total of four, including your existing home.
Property Value
The total property value, “as improved,” must be under $2M.
Loan-To-Value (LTV)
Up to 90% of your property’s value, including the new units, can be refinanced.
Project Costs
The total financing amount must not surpass the project’s total cost.
Amortization
Up to 30 years’ amortization can be applied.
Advantages
If you want to add another unit to your property, whether for additional space, to house another family member, or to generate revenue, this program could be a good fit!
Should you want advice or more direction on whether this program works for your current situation, please get in touch with me!
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 Thomas Werneken on Unsplash
