In an article titled “Help for adding a dwelling to your home,” published in La Presse, John Fucale, Senior Vice President in charge of broker relations at Multi-Prêts, shared his analysis of new government measures announced on October 8, 2024, aimed at encouraging the creation of accessory dwelling units.
These measures will allow homeowners to refinance their mortgage up to 90% of the value of their home, while extending the amortization period to 30 years. This makes projects such as converting basements or garages into additional housing units more financially accessible.
An opportunity for homeowners.
“The Canadian government wants to stimulate housing construction without waiting for every contractor to have the perfect project,” says John Fucale. These measures give homeowners an opportunity to generate additional income while increasing the supply of affordable housing.
By refinancing up to 90% of their home’s value, including the value added through renovations, homeowners can amortize this new loan over 30 years and obtain insurance coverage of up to 2 million dollars, a significant development in the most expensive real estate markets.”
Questions about municipal zoning.
However, uncertainties remain regarding municipal regulations. As Mr. Fucale points out, although the federal government is financially supporting these projects, “how will each city react? How will they issue the necessary permits?” Some cities, such as Sainte-Catherine and Victoriaville, already allow accessory dwelling units, but many municipalities still need to adjust their zoning rules to enable these developments.
A customized solution with your mortgage broker.
These new refinancing options offer an interesting alternative for homeowners who want to create an accessory dwelling unit. To navigate these options, it is essential to consult a mortgage broker. With their expertise, they can guide you toward solutions that fit your needs while maximizing the benefits of these new measures.