Canadian homeowners to add additional suites to their homes; Canadian government making it easier-Dy PM
SJ Singh/ Diaspora Correspondent/ April 15,2024
On April 14,2024 Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that, as part of Budget 2024, the federal government will make it easier for Canadian homeowners to increase the number of units in their homes.
Many homeowners have extra space they may want to convert into rental suites, such as an unused basement, or a garage that could be converted into a laneway home. Historically, the cost of renovating, combined with municipal red tape, has made this both difficult and expensive.
Recent municipal zoning reforms in Canada’s major cities, made possible through Housing Accelerator Fund agreements, are creating new opportunities for homeowners to add additional suites and increase density. New rental suites would provide more homes for Canadians and could provide an important source of income for seniors continuing to age at home. New suites can also be purpose-built to be barrier-free, to accommodate physical impairments of an aging family member or a child with a disability.
To unlock new housing supply, Budget 2024 will propose a new Secondary Suite Loan Program to enable homeowners to access up to $40,000 in low-interest loans to add secondary suites to their homes. Whether used to bring in a new tenant, or build a space for family members to live close by, this new loan program will help increase density to make the most of available space in communities across the country.
Budget 2024 will also announce the government’s intention to make targeted changes to mortgage insurance rules to encourage densification and enable homeowners to add more units to their homes. The government will consult on proposed changes to regulations, including for refinancing, maximum loan and home price, as well as other mortgage insurance rules where homeowners are adding additional units.
This is about realizing Canada’s promise of affordable housing for every generation—and making it easier to add additional suites is only one of the ways Budget 2024 will build more homes. Alongside this measure, in Tuesday’s budget, the government will take further action to build more homes, make life more affordable, and create more good jobs to ensure every generation can get ahead.
Quotes
“Many Canadians, such as retirees who own their homes, or younger families who want their parents to move in to live close by, might want to add a unit to their home. Through our Housing Accelerator Fund, we’ve already reformed zoning to make this possible, and today, we’re announcing homeowners will soon be able to access up to $40,000 in low-cost loans to make it easier add secondary suites. We’re also going to reform mortgage rules that currently prevent homeowners from adding more units, so we can increase density, for those Canadians who want to, in communities across the country.”
Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick facts
- Budget 2024 will be tabled in the House of Commons by the Deputy Prime Minister and Minister of Finance on Tuesday, April 16, 2024.
- In recent days, the government announced Budget 2024 will include the following measures to help solve Canada’s housing crisis:
- Restore generational fairness for renters, particularly Millennials and Gen Z, by taking new action to protect renters’ rights and unlock pathways for them to become homeowners.
- Launch a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction or upgrade of essential infrastructure across the country and get more homes built for Canadians.
- Top-up the Apartment Construction Loan Program with $15 billion, make new reforms so it is easier to access, and launch Canada Builds to call on all provinces and territories to join a Team Canada effort to build more homes, faster.
- Support renters by launching a new $1.5 billion Canada Rental Protection Fund to preserve more rental homes and make sure they stay affordable.
- Change the way we build homes in Canada by announcing over $600 million to make it easier and cheaper to build more homes, faster, including through a new Homebuilding Technology and Innovation Fund and a new Housing Design Catalogue.
- Launching Canada’s Housing Plan to solve the housing crisis, which lays out a bold strategy to unlock 3.87 million new homes by 2031.
- Canadian homeowners to add additional suites to their homes; Canadian government making it easier-Dy PM. Yesterday’s announcement builds on the Multigeneration Home Renovation Tax Credit, which launched in 2023 and provides up to $7,500 for constructing a secondary suite for a senior or an adult with a disability.
