Big News for Homeowners: Refinancing Changes for Secondary Suites

Homeowners looking to expand their living space or create rental opportunities can benefit from new mortgage rule changes coming into effect. These updates allow insured refinancing to fund the construction of secondary suites like basement apartments or laneway homes.

Here’s what you need to know:

Key Details:

1. Who’s Eligible?

   • Homeowners living in the property or with a close relative residing there.

   • Must comply with municipal zoning and use the suite for long-term occupancy (not short-term rentals).

     
     

2. How Much Can You Borrow?

   • Maximum Property Value: Up to $2 million (post-renovation).

   • Loan-to-Value Ratio: Up to 90% of the improved property value (includes existing loans).

   • Maximum Amortization: 30 years for insured mortgages.

     
     

3. Property Limits:

   • A maximum of four dwelling units per property, including the main residence.

     
     

What Does This Mean for You?

• Increased Opportunities: Create additional income by renting the suite or housing extended family.

• More Flexibility: Tap into your home’s equity to fund these improvements with favourable financing terms.

  
  

This change is a step toward increasing housing availability and helping homeowners make the most of their property.

If you'd like help navigating these changes or seeing if your property qualifies, let’s connect!