Question Period Note: Initiatives to support the supply of secondary suites

• The government is making it easier to add secondary suites to single-family neighbourhoods across the country.

• It is doubling the previously announced loan amount of the Canada Secondary Suite Loan Program to $80,000. It is announcing a 2 per cent interest rate on these loans, and 15-year amortizations.

• In addition, starting January 15, 2025, homeowners will be able to refinance with insured mortgages to help cover the cost of a secondary suite.

• Specifically, lenders and insurers will begin allowing mortgage refinancing of up to 90 per cent of the post-renovation value of their home, up to $2 million, amortized over a period of up to 30 years.

• Homeowners will be able to make use of both the loan program and mortgage financing to help cover the cost of adding a secondary suite.

• Canada’s Housing Plan and Budget 2024 announced the creation of a Secondary Suite Loan Program, which would provide up to $40,000 in low-interest loans to add secondary suites to their homes.

• $409.6 million over four years was provided to the Canada Mortgage and Housing Corporation through Budget 2024 to launch the program. The government is not announcing additional funding at this time; only an increase to the maximum loan amount.

• Following consultations on program design, the government decided to increase the program’s loan amount to $80,000, with a loan term of 15 years, and an interest rate of 2 per cent.

• On October 8, 2024, the government announced changes to mortgage insurance rules to encourage densification and enable homeowners to add more units to their homes. The new insured mortgage refinancing product will be available effective January 15, 2025.

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