Grant or loan to build a secondary suite or laneway home
The federal government has changed several items in offering loans or grants to Canadian homeowners that can assist them in building them faster.
Several changes are coming in 2025 that will impact building secondary suites, primarily driven by new federal initiatives in Canada. Here’s a summary:
Financial Incentives and Programs:
- Increased Loan Limits: The Canada Secondary Suite Loan Program will double its loan limit to $80,000 in early 2025. This will provide homeowners with greater financial assistance to create secondary suites.
- Mortgage Refinancing: Starting January 15, 2025, homeowners will be able to refinance their insured mortgages to finance the construction of secondary suites. This allows access to home equity for funding these projects.
- Borrowers can access financing of up to 90% of the home value (including the added value of the suite).
- Amortization periods can be up to 30 years.
- The mortgage insurance home price limit for refinancing will increase to $2 million.
Other Considerations:
- Municipal Regulations: While the federal government is introducing these changes, it’s crucial to remember that municipal bylaws and regulations still apply. These can vary significantly between cities and towns, so it’s essential to check with your local municipality for specific requirements regarding zoning, permits, and construction standards.
- Infrastructure Fees: Some municipalities may introduce or modify fees related to secondary suites. For example, the Township of Langley in British Columbia will implement an Annual Secondary Suite Infrastructure Fee in 2025, collected with annual property taxes.
Key Takeaways:
The changes in 2025 are primarily aimed at making it easier for homeowners to finance and build secondary suites, increasing housing density and affordability. The increased loan limits and the ability to refinance mortgages will provide significant financial support. However, it’s crucial to stay informed about local regulations and any potential municipal fees.
I recommend checking these resources for more detailed information:
- Canada.ca: The official website of the Government of Canada often has updates on housing initiatives.
- CMHC (Canada Mortgage and Housing Corporation): This organization provides information on housing programs and financing.
- Your Local Municipality’s Website: This is the best source for specific local regulations and requirements.
You can visit the government page here
There is more information about BC Housing and the grants and loans they offer here
We also help you to go through the process. All you have to do is to contact us and ask for Aryo
