Aug 23, 2024
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Equitable Bank has introduced the Laneway House Mortgage, a construction loan to help Canadian homeowners finance the building of laneway homes or garden suites on their property. The loan product is initially available in the Greater Toronto Area, Greater Vancouver Area and Calgary.
"Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place," said Mahima Poddar, Equitable Bank’s senior vice-president and group head of personal banking.
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"Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities."
The loan allows homeowners to expand their living space or gain an additional source of rental income, while also aiding in bringing housing density to urban centres.
The Laneway House Mortgage
The Laneway House Mortgage is offered on properties that are free and clear, or in combination with new or existing mortgages where Equitable Bank holds, or will hold, the first position.
This construction loan will be available to homeowners through the bank’s mortgage broker partners to ensure the solution best fits the borrower’s requirements. Its website includes an extensive list of appraisers.
Naturally, the borrower also has to be self-employed or salaried.
Some of the potential benefits of the mortgage the bank listed include:
- Increasing the value of homeowners' properties
- Providing multigenerational households with a solution to build additional living space for family members
- Offering homeowners an additional stream of rental income
- Improving housing availability and access in urban centres
- Offering a way to downsize and remain in their communities without having to relocate.
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Equitable Bank
In 2023 alone, Equitable Bank funded $3.4 billion in loans for multi-unit residential properties to aid in addressing Canada’s housing shortage through the Canada Mortgage Housing Corporation's MLI Select Insurance program.
As Canada’s seventh largest bank, it provides services to over 639,000 customers and more than six million credit union members through its businesses. Founded in 1970, the Toronto-based bank is a wholly owned subsidiary of EQB Inc., a digital financial services company with $123 billion in combined assets under management and administration as of the end of April.
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Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
