Canada expands financial aid for secondary suite construction

The federal government has unveiled new measures to help homeowners build secondary suites as part of its 2024 Fall Economic Statement. Starting in early 2025, the Canada Secondary Suite Loan Program will double its loan limit from $40,000 to $80,000, offering low-interest loans for homeowners to convert spaces like basements and garages into rental units. This initiative aims to increase the availability of affordable housing across the country.

Additionally, beginning January 15, 2025, homeowners can refinance with insured mortgages, accessing up to 90% of their home’s post-renovation value. The government is also introducing broader mortgage reforms to reduce down payments and expand 30-year amortizations, benefiting first-time buyers and those purchasing new builds.