The feds want more people to live like wealthy early modern Britons and let someone post up on their property.
Driving the news: The federal government is introducing a new measure meant to stimulate the construction of more secondary suites. Effective January 15, 2025, homeowners will be able to refinance their mortgage and access up to 90% of their home’s value to build an extra suite.
- And the borrower can amortize that refinanced mortgage over a 30-year span, giving them pleeenty of time to rake in cash from renters and pay back the money.
Why it matters: The feds, several provinces, and multiple cities have turned to secondary suites in recent years — be it basement apartments or laneway homes — as a way to unlock more housing. Large, favourable loans could help convince homeowners to add another unit.
- Notably this year, Calgary launched its Secondary Suite Incentive Program with loans up to $10,000, and B.C. started a provincewide program with loans up to $40,000.
Zoom out: Funding could also breed new types of secondary suites. Like Brauer Homes’ Living Pods — essentially co-op tiny homes built on existing properties. Kingston, Ontario, was the first city to trial the pods this year, and Brauer is now looking to test in Toronto.—QH