New Mortgage Rules in Canada: How to Refinance and Build Secondary Suites in 2025
As of January 15, 2025, homeowners across Canada have access to an opportunity to meet housing needs and create additional income streams. The updated mortgage insurance rules now allow refinancing with insured loans specifically designed for building secondary suites. This change not only addresses Canada’s housing shortage but also empowers homeowners to enhance their properties and finances. As a REALTOR® with years of experience in Golden, BC, I’m here to break it all down for you and provide expert guidance.
What’s New?
Under the revised rules, homeowners can now refinance up to 90% of their property’s value. This includes the projected value added by the construction of a secondary suite. Additionally, extended amortization periods of up to 30 years make payments more manageable, giving homeowners the flexibility they need to improve their properties.
What Qualifies as a Secondary Suite?
Secondary suites are self-contained living units within or on the same property as a primary residence. Examples include:
- Basement apartments
- Laneway homes
- Garden suites
These units typically feature a separate entrance, kitchen, and bathroom, providing privacy and functionality for tenants. Whether you’re looking to house a family member or generate rental income, secondary suites are a win-win.
Key Benefits for Homeowners
- Increased Income Potential: Secondary suites can provide a reliable rental income, helping to offset mortgage payments or household expenses.
- Property Value Boost: A well-designed secondary suite can significantly enhance your home’s resale value.
- Community Support: By creating affordable rental options, you’re contributing to solving the housing shortage in your area.
How Does Refinancing Work?
Refinancing involves working with your mortgage provider to access additional funds for your secondary suite project. It’s best to consult directly with your mortgage broker or holder to understand your options and how this program can work for you.
Things to Consider Before You Start
While the new rules open doors to exciting opportunities, careful planning is essential:
- Permits and Regulations: Check your local municipality’s rules for secondary suites, including zoning laws, parking requirements, and building codes. Learn more about building codes in BC. Learn more about the Town of Golden zoning and requirements.
- Tenant Rights and Responsibilities: If renting the suite, familiarize yourself with provincial tenancy laws to ensure smooth landlord-tenant relationships. Explore tenancy laws in BC.
- Budget and ROI: Analyze the construction costs against potential rental income and long-term property value increases. I can help you run the numbers and provide insight into the local market.
Is This the Right Move for You?
If you’ve considered adding a secondary suite to your home, now is the perfect time to explore this option. Not only do the new rules make it more accessible, but they also allow you to play an active role in addressing the housing challenges many communities face today.
Ready to Build Your Secondary Suite?
Don’t let this opportunity pass you by! Let’s work together to explore your options, navigate the construction process, and achieve your property goals. Contact me, Amber Granter your local Golden British Columbia REALTOR® today.
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