Canada’s Updated Secondary Suite Loan Program
Big News for Homeowners: Expanded Secondary Suite Loan Program
Starting in early 2025, the Canadian government is enhancing the Secondary Suite Loan Program (SSLP) to help homeowners create affordable rental spaces like basement apartments and laneway homes. These updates aim to increase housing supply and provide Canadians with more affordable living options.
What’s New?
- Loan Increase: Homeowners can now access up to $80,000, doubling the previous maximum of $40,000.
- Low Interest Rate: Loans will carry a 2% fixed interest rate over a 15-year repayment term.
- Rental Housing Focus: Perfect for adding income-generating spaces to your property.
New Mortgage Refinancing Option for Larger Renovations
Starting January 15, 2025, homeowners will also have access to a new mortgage refinancing option for bigger renovation projects. This program is designed for substantial upgrades that significantly increase property value, such as building larger secondary suites or making major home improvements.
Key Features of the Program:
- 90% Loan-to-Value Refinancing: Homeowners can refinance up to 90% of their home’s post-renovation value, with a cap of $2 million.
- 30-Year Amortization: Lower monthly payments with a long repayment period.
This option is ideal for homeowners looking to maximize their property’s potential while keeping renovation costs manageable.
How Secondary Units Can Help Homeowners
Guidance on Funding: We’ll help you apply for the SSLP or mortgage refinancing program.
Custom Designs: Tailored solutions to meet local zoning and building code requirements.
