New Mortgage Refinancing Program for Secondary Suites to Launch in January 2025

The Canadian government has announced a new mortgage refinancing program aimed at increasing housing supply by allowing homeowners to build secondary suites. Starting January 15, 2025, homeowners can refinance up to 90% of their home’s value, with a cap of $2 million, to add up to four self-contained rental units, such as basement apartments, in-law suites, or laneway homes. This initiative is part of broader efforts to address Canada’s housing shortage and create more long-term rental opportunities.

Key features of the program include:

• Refinancing Cap: Homeowners can refinance up to 90% of their home’s value, with a limit of $2 million.
• Flexibility in Use: Build up to four self-contained rental units, helping families generate rental income or provide multi-generational living options.
• January 2025 Start Date: The program officially begins on January 15, 2025.

This new refinancing option follows recent mortgage rule updates, including the removal of the stress test for uninsured mortgage renewals and OSFI's updated mortgage guidelines, which provide more flexibility for homeowners to switch lenders and secure better rates.

If you’re interested in taking advantage of this program, reach out to our team to explore your refinancing options and learn how you can leverage this new opportunity.