Homeowners looking to add a secondary suite to their properties could soon access up to $80,000 in low-interest loans as part of an enhanced federal program previously announced in budget 2024.
The fall economic statement, to be released on Dec. 16, will double the loan limit for the Canada Secondary Suite Loan Program — to $80,000 from $40,000 — and the program will launch in early 2025, the Department of Finance said in a release on Tuesday.
“By doubling the loan limit, more homeowners will be able to access the low-interest financing they need to add a secondary suite to their home,” the release said. “This will make it cheaper for homeowners to do so through 15-year loan terms at a low-interest rate of just 2%.”
As announced earlier this autumn, the federal government will also allow refinancing of insured mortgages for secondary suites. Borrowers will be able to access financing of up to 90% of the post-renovation value of their homes, up to $2 million, amortized over a period of up to 30 years. Lenders and insurers will begin allowing this refinancing on Jan. 15, Tuesday’s release said.
Homeowners can use both the loan program and mortgage financing to help cover the cost of adding a secondary suite, it said.
Effective Dec. 15, previously announced mortgage rules will lower down-payment requirements for homes valued between $1 million and $1.5 million, and expand the availability of 30-year amortizations for all first-time homebuyers and all purchasers of new builds.
Earlier this autumn, the federal government began consulting on the introduction of vacant land taxes as a way to incentivize home building. That consultation will end Dec. 31.