In case you haven’t heard, the federal government’s fall economic statement included new programs to make it easier for homeowners to add secondary suites to their properties. These plans have already been launched in an effort to add much-needed housing supply to the GTA and Canada.
Through the existing Canada Secondary Suite Loan Program and in addition to the $80,000 of low-interest loans available, homeowners can refinance their insured mortgages up to 90% of their home’s value (up to $2M) to construct secondary suites on their property. Whether the suite is for a family member or as a rental, the goal is to increase housing density.
Despite this program’s December announcement and launch on January 15, however, only a handful of major lenders are currently and openly accepting applications for this financing.
Waiting for Program Details
The holdup appears to be in the details.
Numerous brokers await further information on the program’s management before offering it to their clients. Lenders are taking the same approach, frustrating homeowners who want to take advantage of the program.
The Major Banks
At the time of publication, only BMO, RBC, and National Bank are actively assisting customers who want to pursue the refinancing program option. If you are a client of these banks, contact one of their mortgage specialists to learn more about your eligibility and to begin the application process.
The other major banks, TD, Scotiabank, and CIBC are still reviewing the program and/or waiting for further information from CMHC.
What about other lenders?
If you’re considering contacting financial institutions other than the big banks, lenders such as Coast Capital and Equitable Bank have Secondary Suite programs.
Many construction loans are also available through the alternative lending space for building a Garden or Laneway suite.
When I contacted the CMHC for more information about other lenders, a spokesperson said that further details on institutions offering the refinancing option were unavailable.
Further, they said to contact your mortgage specialist at your bank or lender, as they may already have something set up. If nothing is in place, have them contact the CMHC for further information and if they can arrange the refinancing program for you.
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).ur lender may not be set up yet.
