To alleviate the current tight housing market and the growing lack of affordable homebuying options, the Canadian federal government announced a new mortgage refinancing product aimed at homeowners interested in adding secondary suites to their principal residence property.
Starting January 15, 2025, eligible homeowners can refinance up to 90% of their property’s value, including any increase in value resulting from the addition of a secondary suite. However, a maximum property value for this new refinancing option of $2 million may eliminate entire Canadian neighbourhoods from participating in this new secondary suite refinancing program.
Deputy Prime Minister and Finance Minister Chrystia Freeland announced the new product at a press conference in mid-October, highlighting that homeowners can amortize their refinanced mortgages for up to 30 years.
This latest initiative is part of the government's broader goal of increasing housing supply through "gentle density" — a gradual increase of those living within a residential area. The goal of the new mortgage refinancing for secondary suites is to make it easier for people to add basement apartments, garden suites or laneway houses to their current property.
