In the article titled “The Government of Canada wants to facilitate the construction of accessory housing units,” published on Conseiller.ca, John Fucale, Senior Vice-President of Broker Relations at Multi-Prêts Hypothèques, explains the government measures announced on October 8, 2024 by the Government of Canada.
These measures aim to encourage the development of accessory dwelling units in order to help address the growing demand for housing.
Refinancing up to 90% of the property’s value.
Starting January 15, 2025, homeowners will be able to refinance their insured mortgage up to 90% of their home’s value, including any added value from renovations. This program, which also allows for amortization periods of up to 30 years, is designed to make it easier to undertake projects such as converting basements or garages into additional housing units.
“Homeowners will be able to obtain refinancing to build up to four units, including the one they live in. The goal is to add long-term rental housing, not Airbnb-style short-term rentals. Another key condition is that the borrower or a close family member must occupy one of the units,” explains John Fucale.
Additional income opportunities
The initiative aims to address the housing crisis while allowing homeowners to generate additional income. “The simplest option will be to convert a basement into a separate apartment. If there is a detached garage in the yard, it will also be possible to add a second floor to it. Each new housing unit must have its own private entrance. The homeowner will be able to derive a new source of income,” explains John Fucale.
Challenges for municipalities and homeowners
Municipalities will, however, need to adapt their regulations to allow for the addition of these housing units. “Cities will need to consider how they can create new housing opportunities. They will have to revise their zoning rules and density requirements,” he notes.
Homeowners will also need to adjust to certain changes. “Someone who has lived in their home for 20 years will have to adapt to having new neighbors and to sharing certain spaces such as the yard,” adds John Fucale.
Here is an article suggestion to further deepen your understanding of refinancing for accessory dwelling units.
Get support from a mortgage broker.
To take advantage of these new refinancing opportunities, consult a mortgage broker. They can guide you toward the solution best suited to your needs while helping you maximize the benefits of these new measures.