The recent mortgage insurance changes from the Canadian government will allow homeowners to add secondary suites through insured refinancing, enabling them to borrow up to 90% of their property’s value for such projects. These changes offer a significant boost to homeowners looking to increase rental income or provide multi-generational living spaces. By focusing on long-term rental units, this initiative could ease housing shortages in high-demand areas, while also making it easier for homeowners to generate additional income from their properties.
This shift is expected to have several positive effects:
Increased Housing Supply: As homeowners build legal secondary suites, more long-term rental units will enter the market, helping to ease the housing supply crunch in cities across Canada.
Boost to Affordability: With more rental units available, renters may benefit from increased competition, potentially lowering rental rates in high-demand areas.
Opportunities for Homeowners: This change also empowers homeowners to make better use of their property by offering potential income through rental units, thus helping with their mortgage payments.
Support for Multi-Generational Housing: Families looking for multi-generational living arrangements can also benefit, as the added flexibility of secondary suites allows for extended family members to live on the same property.
While the policy excludes short-term rentals, this move is a positive step toward addressing long-term housing challenges by making it easier for homeowners to contribute to rental stock.
These changes could have a long-term stabilizing effect on both the housing and rental markets as homeowners take advantage of the opportunity to build secondary suites on their properties. For more details, visit the official announcement here.
If you're curious about how these new mortgage changes can help you build a secondary suite or want assistance finding the right property to take advantage of these opportunities, I’m here to help! Whether you're looking to refinance or invest in a home with rental potential, reach out today. Let’s discuss how you can make the most of these new options and create more value from your property.
Feel free to contact me for more details or to explore the market!