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BIG NEWS FOR HOMEOWNERS: new federal program for adding rental suites
Dated: October 12 2024
Views: 65
The federal government has just unveiled a new mortgage refinancing program to help homeowners build additional living spaces, such as basement apartments or converted garages.
Starting in January 2025, this insured refinancing option will make it easier to create rental units and, in turn, help homeowners manage rising mortgage costs. A similar program was available until 2016 but was phased out to cool the housing market. Now, with housing in short supply, it’s back – giving homeowners a chance to add rental opportunities and even generate extra income.
As the government stated, "New rental suites would provide more homes for Canadians and could provide an important source of income for seniors continuing to age at home."
Key program details:
• Eligibility: You must already own your home, live in one of the current units (or have a close relative living there), and plan to add new units.
• Refinancing: You can access insured refinancing to fund the creation of additional units.
• Unit requirements: The new units must be self-contained, like basement suites or laneway homes, and follow local zoning rules. Short-term rentals like Airbnb are not allowed.
• Number of units: You can have up to four units on your property, including your existing home.
• Property value: The "as improved" property value must be under $2 million.
• Loan-to-value (LTV): You can refinance up to 90% of your property's value, including the new units.
• Amortization: Up to 30 years.
• Project costs: Financing must not exceed the total cost of the project.
This program could be a good option if you're considering adding a rental unit or creating more space for family.
However, it's important to understand the costs and how refinancing might impact your finances. If you'd like to see if this program makes sense for you, contact your mortgage broker. If you would like a second opinion I am able to connect with one of my mortgage brokers. I have worked with many throughout my many years in real estate. There are some that I feel work outside the box, that have taken care of clients who have "special circumstances". Who are seasoned mortgage brokers and they helped many of my previous clients successfully be able to happily make their dreams come true. I would recommend one depending on your personal situation.
I am always happy to help.
Claudette Coutts
Highly competent, experienced and approachable, the Coutts Team puts a priority on building a rapport with clients. Their expert marketing ensures everyone has a truly great experience, with the least....
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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
Last Update: September 23, 2026 6:30 PM UT
Information should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is recommended. Copyright ©2026 All rights reserved.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.