New Mortgage Refinancing Program: A Game-Changer for Homeowners and the Housing Market
The federal government recently announced a new mortgage refinancing program to help address Canada’s housing shortage by encouraging homeowners to build secondary suites. Starting January 15, 2025, Canadians can refinance up to 90% of their home’s value to add self-contained rental units. Here’s what you need to know.
What This Means for Homeowners
- Refinance up to 90% of your home’s value: Use the funds to build secondary suites.
- Create additional income: These units can be rented out long-term, helping you offset rising mortgage costs.
- Flexible terms: A maximum 30-year amortization makes payments more manageable.
- Limit of 4 units: You can add up to four self-contained suites per property.
This program is especially beneficial for homeowners looking to generate rental income or for seniors wanting to age in place while creating a steady income stream.
Impact on the Real Estate Market
- More affordable rentals: The addition of secondary suites will increase rental supply in high-demand areas, helping ease the housing crunch.
- New investment opportunities: Investors can capitalize on this program by creating multi-unit properties, boosting long-term rental income without buying additional land.
This initiative could help balance the housing market by increasing the availability of affordable homes while offering financial relief to homeowners.
The Bigger Picture: Unlocking Vacant Land
Along with the refinancing program, the government is exploring ways to develop vacant land and underused federal properties. This could lead to more housing being built, further easing supply issues.