Ishtiaq  Ahmed

Ishtiaq Ahmed

Broker of Record

ZOWN REALTY INC.

Mobile:
416-999-6975
Office:
866-438-9696
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Secondary Suite Loan Program 2024

Today, Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, unveiled a key component of Budget 2024 aimed at facilitating Canadian homeowners in expanding the capacity of their residences.

Many homeowners have unused space within their properties that could be transformed into rental units, such as vacant basements or garages suitable for conversion into laneway homes. However, historically, the costs associated with renovations, coupled with bureaucratic hurdles at the municipal level, have posed significant barriers to this endeavour.

Recent zoning reforms in major Canadian cities, facilitated by Housing Accelerator Fund agreements, are opening up fresh opportunities for homeowners to add supplementary units and enhance residential density. These additional rental units would not only contribute to addressing the housing shortage but could also serve as vital income sources for seniors choosing to age in place. Moreover, new units can be designed to be barrier-free, catering to the needs of aging family members or individuals with disabilities.

To stimulate the creation of new housing stock, Budget 2024 will introduce the Secondary Suite Loan Program, offering homeowners access to up to $40,000 in low-interest loans specifically earmarked for adding secondary suites to their properties. Whether utilized to accommodate new tenants or to provide living space for close family members, this loan initiative aims to boost residential density and optimize available space in communities nationwide.

Furthermore, Budget 2024 will propose targeted amendments to mortgage insurance regulations to incentivize densification and empower homeowners to incorporate additional units into their residences. The government will engage in consultations regarding potential adjustments to regulations concerning refinancing, maximum loan and home prices, and other mortgage insurance rules applicable when homeowners are expanding their properties.

This initiative underscores Canada's commitment to affordable housing for all generations. Enhancing accessibility to additional dwelling units is just one facet of Budget 2024's multifaceted approach to fostering housing growth. In tandem with this effort, the government will unveil further measures in Tuesday's budget to bolster housing construction, improve affordability, and stimulate job creation, ensuring prosperity for every generation.

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