In the article titled “Help to add a unit to your home,” published in La Presse, John Fucale, Senior Vice-President of Broker Relations at Multi-Prêts Hypothèques, shares 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 their home’s value while extending the amortization period to 30 years, making projects such as converting basements or garages into additional housing units more accessible.
An opportunity for homeowners
“The Canadian government wants to stimulate housing construction without waiting for every developer to have the perfect project,” notes John Fucale. These measures offer 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 insure up to $2 million, a significant development in the most expensive housing markets.
Questions about municipal zoning
However, uncertainties remain regarding municipal regulations. As John Fucale points out, although the federal government is financially supporting these projects, “how will each city respond? How will they issue the necessary permits?”
Some municipalities, 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 tailored solution with your mortgage broker
These new refinancing options offer an interesting alternative for homeowners looking 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 tailored to your needs while helping you maximize the benefits of these new measures.