Starting in early 2025, the Canada Secondary Suite Loan Program will double the loan limit from $40,000 to $80,000, making it easier for homeowners to finance the creation of rental units on their property, such as basement suites or laneway homes. In a speech, Deputy Prime Minister Chrystia Freeland said, “This program offers 15-year loan terms at just two per cent. That makes it easier for homeowners to add a secondary suite. It’s going to be administered by CMHC and it will launch in early 2025. It builds on existing measures in place allowing homeowners to refinance their mortgage to help cover the cost of adding a secondary suite.”
Borrowers can access up to 90 per cent of the post-renovation home value up to $2 million amortized over a period of up to 30 years and that starts January 15, 2025. Homeowners will be able to use both the loan program and will have access to mortgage refinancing. Together these two measures will make it easier for homeowners to build a secondary suite.
