The federal government is launching a mortgage refinancing program aimed at supporting the construction of secondary suites to alleviate the housing shortage. Starting January 15, 2025, Canadians can access up to 90% of their home’s value through default-insured refinancing to build these suites. This program revives a similar initiative from 2016 that was halted due to tightened mortgage rules.
Key details include: –
- Maximum loan-to-value (LTV) ratio of 90% based on the property’s improved value, capped at $2 million.
- A maximum 30-year amortization period.
- Homeowners can add up to four units, including the existing one, and each must be a fully self-contained unit.
- Units must be long-term rentals, not for short-term use.