Oct 8th, 2024: The Canadian government has introduced new initiatives to tackle the housing crisis by expanding opportunities for homeowners and developers. A key part of this announcement is the support for homeowners to build secondary suites and the use of vacant land for housing development.
Building Secondary Suites: Transforming Underused Spaces
Starting January 15, 2025, homeowners will be able to refinance their mortgages to add secondary suites, such as basement apartments, laneway homes, or in-law suites. This move allows homeowners to tap into their home equity, providing financing for the construction of additional housing units. Whether it’s converting an unused basement into a rental apartment or building a separate home for family members, these secondary suites will create more housing options in urban and suburban areas, increasing the density of Canadian communities.
One significant benefit of these reforms is the ability for homeowners to access up to 90% of their home’s value, including the added value of the new suite. Additionally, the mortgage insurance price limit for these homes will rise to $2 million to reflect high property values in many regions, ensuring that the program is accessible across various housing markets, and amortization periods are being extended to 30 years, making monthly payments more manageable.
The addition of secondary suites presents a win-win for homeowners and the community. Not only can homeowners offset their mortgage payments with rental income, but secondary suites also offer affordable housing for renters and multi-generational families who want to live together while maintaining separate living spaces. The government has emphasized that this plan will play a crucial role in boosting housing availability in densely populated areas.
Unlocking Vacant Land for Housing
The federal government is also exploring the taxation of vacant land to incentivize development. By taxing unused properties, the government aims to reduce land speculation and push for faster housing development. This move is part of a larger effort to unlock vacant and underutilized lands across the country, spurring the creation of homes on previously idle properties.
Unlocking Federal Properties
Another significant part of the plan is the addition of 14 new federal properties to the Canada Public Land Bank, making a total of 70 properties available for housing development. These lands, located in cities like Ottawa and Québec City, are expected to contribute to building 250,000 new homes, further increasing housing availability.
This announcement builds on Canada’s ambitious housing plan, which aims to construct 4 million homes by 2031. By offering both private homeowners and developers more opportunities, the government is striving to make housing more accessible for all Canadians. Whether it’s through secondary suites, the use of vacant land, or federal properties, these initiatives create new pathways for affordable housing development.
Benefits to Canadians
For homeowners, these initiatives provide a clear opportunity to both increase the value of their homes and generate passive income. For developers, the government’s actions open up new opportunities to build on previously unused lands, contributing to the overall housing supply. The efforts also aim to ensure that housing becomes more affordable across generations, helping Canada address the ongoing housing crisis.
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