Building a Secondary Suite

Building a secondary suite/ rental unit in your home is a wise strategy for many home owners. It can provide an additional source of income, increase the value of your home, provide an option for future housing of family (eg aging parents or children returning home) while maintaining privacy, and can help ease the current housing shortage, 

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The federal government has recently launched initiatives to make it easier for home owners to add a secondary suite/rental unit to their home. Links to these announcements are provided below. Noteable changes include:

•  changing the maximum loan to value (LTV) from 80% to 90% of the home's post-renovation value (up to a maximum of $2,000,000 valuation)

• extending the amortization period (how long it will take to pay off the mortgage) from 25 years to 30 years

• the secondary housing suite program that provides for home owners to borrow up to $80,000 at low interest rates to add a secondary suite/rental unit to their home.

• the multigenerational home renovation tax credit program (MHRTC

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https://www.canada.ca/en/department-finance/news/2024/12/2024-fall-economic-statement-making-it-easier-for-homeowners-to-build-secondary-suites.html

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https://www.canada.ca/en/department-finance/news/2024/10/mortgage-insurance-rule-changes-to-enable-homeowners-to-add-secondary-suites.html

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https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/multigenerational-home-renovation.html

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Accessing the equity in your home can provide the funds to make the necessary renovations to your home to add a secondary suite/rental unit. If you would like to explore the possibility, reach out to me at Mortgage Know How.

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